The DWP is on the verge of announcing its plans for a new state pension system, Ros Altmann, director general of Saga says.
The announcement has been delayed since October, and many experts believe civil servants are having difficulty deciding how contracting out will be dealt with.
In January, shadow pensions minister Rachel Reeves criticised the government for shelving a consultation on introducing a flat-rate, simplified state pension, which had been promised before the end of 2010.
Some sources close to the DWP and the Treasury have hinted a state pension of £140 per week is in the pipeline, but there are no details yet of how the entitlement of people who have contracted out their state pension will be handled.
"We are getting close to an announcement," says Altmann.
"Everything is in place, they just need to push the button. This has been going on since October, and we keep thinking this is going to happen but it has not.
"Contracting out is part of the delay. It is quite clear that contracting out has got to go, and from a Treasury point of view it will be brilliant because it will bring in millions."
Altmann says the reform will interact closely with reforms public sector pensions. Former Labour minister Lord Hutton will deliver his final report recommending public sector pension reforms on 10 March.
A spokesperson for the DWP says: "We have no announcements due at this time."
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