Budget 2011: Final blow to DB schemes as contracting-out abolished

George Osborne announced the government would look to reform the state pension for future pensioners so it provides simple, contributory, flat-rate support above the level of the means-tested Guarantee Credit. The Budget report says the DWP will publish a Green Paper to consult on options for reform shortly, including a proposal for a single tier pension, currently estimated to be worth around £140 a week. However, it says the proposals would end contracting-out for DB schemes. Pensions experts had predicted such as move would kill the financial incentive companies have to keep the sc...