Single Tier State Pension

First announced at the start of 2013, the proposed reform of the UK state pension system has been accelerated by the Government and is now due to take effect from April 2016. Whilst the changes are intended to simplify state retirement benefits in the long run, the end of ‘contracting-out’ for open-to-accrual defined benefit (DB) arrangements will bring some short-term complications.

Scheme sponsors should start thinking about how the associated increase in National Insurance (NI) costs may be mitigated sooner rather than later as there may be factors which inhibit their ability to make certain changes.

For further information on this please read our latest briefing note.