New pension simplification regulations concerning contracting-out of the state second pension scheme are to be released for consultation, Pensions Minister Malcolm Wicks has announced.
Anticipated regulations could include enabling contracted-out benefits to be paid as part of a cash lump sum, making benefits in pension schemes, which have opted out of the Additional State pension, simpler to administer and understand, according to the Department for Work and Pensions . Wicks said the changes would simplify a system which is otherwise too complicated. He added: “They remove some of the restrictions on when and how contracted-out benefits can be paid. The regulations will provide pension scheme members with a greater degree of flexibility at retirement and will also ma...
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