The Queen has confirmed the government will introduce legislation to reform public sector pensions, changing the schemes from final salary set ups to career average arrangements.
Marking the state opening of Parliament this morning, the Queen's Speech set out the government's agenda for the new parliamentary session, focusing on "economic growth, justice, and constitutional reform".
She said: "Legislation will be introduced to reform public service pensions in line with the recommendations of the independent commission on public service pensions."
Other provisions of the Public Service Pensions Bill will include asking people to retire later, with pension benefits normally paid at state pension age, with the exception of members of the police, armed forces and firefighters' schemes.
In supplementary notes to the speech, the government said the reforms would "ensure provision is sustainable and that costs and benefits between employers, workers and other taxpayers are balanced more fairly".
Meanwhile, as expected, the Queen also confirmed plans to overhaul the state pension, with a flat-rate worth about £140 a week set to be introduced and the state pension age to be increased to 67 between 2026 and 2028.
Most of the key points of the speech were heavily trailed ahead of its delivery this morning, including plans to make banks ringfence their high street operations from the ‘casino'-style investment businesses.
The Queen said: "Measures will be brought forward to further strengthen regulation of the financial services sector and implement the recommendations of the Independent Commission on Banking."
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The majority of financial advisers (85%) believe the number of self-invested personal pension (SIPP) providers will continue to fall in the coming year, according to Dentons Pension Management research.
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