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DWP response to state pension petition

6/11/2015

4 Comments

 
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The Government has responded to the petition “Make fair transitional state pension arrangements for 1950’s women”.

Below is their response received in an email Friday

"State Pension age changes were first made in 1995. All women affected have been directly contacted following the changes. There are no plans to alter State Pension age arrangements for this group.

Firstly, to clarify, State Pension age (SPa) changes affect individuals in the following way:

• Women born between 6th April 1950 and 5th April 1953 have an SPa set by the 1995 Pensions Act, of between 60 and 63. This group will reach SPa by March 2016, and will therefore receive a State Pension under the current system.
• Women born between 6th April 1953 and 5th December 1953 have an SPa set by the 2011 Pensions Act, of between 63 and 65. The maximum increase in SPa that anybody will experience relative to the 1995 timetable is 16 months. This group will reach pension age after the introduction of the new State Pension.

PictureWASPI's response to the DWP response!
• Men and women born between 6th December 1953 and 5th April 1960 have an SPa set by the 2011 Act, of between 65 and 66. Of the approximately five million individuals affected by the 2011 change, two point four million are men. For women, the maximum increase in SPa relative to the previous timetable is 18 months and for men it is 12 months. This group will also reach pension age after the introduction of the new State Pension.
Both the 1995 and 2011 changes followed on from public calls for evidence.

The Government has notified the women affected by the State Pension age changes.

Following the 2011 changes, DWP wrote to all those directly affected to inform them of the change to their State Pension age - using the address details recorded by HMRC at the time.

Mailing to these individuals, due to reach State Pension age between 2016 and 2026, was completed between January 2012 and November 2013, subject to the accuracy of their address details with HMRC.

Letters to women with a State Pension age determined by the 1995 timetable (born between 6th April 1950 and 5th April 1953) were sent between April 2009 and March 2011. The DWP also has information on State Pension age changes and who they affect on gov.uk.

This includes State Pension age timetables, impact assessments (including an impact assessment for the 2011 Pensions Act) and a State Pension age calculator. In addition, the State Pension age equalisation changes were built into the State Pension statement IT system; introduced in 2001.

Therefore, statements produced on request using this system would have included women’s new State Pension ages as determined by the 1995 Pensions Act.

The Government will not be revisiting the State Pension age arrangements for women affected by the 1995 or 2011 Acts. The Government carried out extensive analysis of the impacts of bringing forward the rise to 66 when legislating for the change (impact assessment available at Gov.uk). The decision to amend the timetable originally set out in the bill, to cap the maximum increase at 18 months rather than 2 years, was informed by this analysis.

All women affected by faster equalisation will reach State Pension age after the introduction of the new State Pension.

The new State Pension will be more generous for many women who have historically done poorly under the current, two-tier system - largely as a result of lower average earnings and part-time working.

Around 650,000 women reaching State Pension age in the first ten years will receive an average of £8 per week (in 2014/15 earnings terms) more due to the new State Pension valuation of their National Insurance record.

Regular consideration of State Pension age is necessary to ensure the pensions system remains sustainable as life expectancy grows. The 2014 Act provides for a 6-yearly review, to take into account up-to-date life expectancy data and the findings of an independently-led review. The first review will conclude by May 2017 and will consider, amongst a number of other factors, the impact of State Pension age change on women.

The policy decision to increase women’s State Pension age is designed to remove the inequality between men and women. The cost of prolonging this inequality would be several billions of pounds. Parliament extensively debated the issue and listened to all arguments both for and against the acceleration of the timetable to remove this inequality. The decision was approved by Parliament in 2011 and there is no new evidence to consider.

From Department for Work and Pensions

4 Comments
Julie Nipress
6/11/2015 07:18:48 pm

inequality in men and women 1st when I started work in the 70s I earned less than the men doing the same job,men where promoted to better paid jobs, had better pensions as a older mum I still have a Eighteen year old that has left College an can't get a job as well as her other friends, cannot remember getting any letter, the only thing I did was to contact the NI to see what NI years I have done then they said to me about pension age , I will not be able to do my work when older as it's to physical on feet all day on a deli counter, Many Women off ill so many times in shop work with long term illness , this cannot be good for industry, jobs for the young.

Reply
Eileen
6/11/2015 10:43:15 pm

Thanks for droppiung by JUlie and sharing your experiences.

Yes I remember doing an office job in the early 70's where the only young bloke in the office earned more simply because he was male.

What sickens me is that many women who would have enough years contribution for the new pnsion will not get it due to when they were born-ageist or what?

Moving the goalposts again in 2011 left many womenclose to retirement with no chance.

We all signed up for a pension contract in effect years ago and shifting the goalposts and more is not cricket

Reply
Roz
7/2/2016 06:48:30 pm

So the Government has absolved itself of any responsibility for the failure to communicate the changes in a timely manner to these women. Giving some born in their early to late fifties only 1 -2 years notice (depending on DOB) that their retirement age had been changed and was no longer as expected at 60. Some having an unexpected six years (triggered by the 2011 act)additional financing to find before they receive their pension. Even though there was no legal requirement in the 1995 act to notify individuals (this being a serious omission in itself) Surely there is now a moral one. My understanding is that the EU equalisation act stated that Transitional Arrangements should be made so that people were not adversely affected by Equalisation. Only a small arrangement was made - and then under pressure. Equalisation was implemented to quickly in order to save money and no consideration was made to the fact that many of these women had already paid into the state pension system for over 40 years and many rely totally on the SP. I am Appalled. Shame on them.

Reply
Eileen
8/2/2016 12:15:09 am

I fall into the category. We all left school and paid into an agreement that was changed when it was too late for us to make other provision.

And some men are also losing out on new pension due to age.

I know this was debated in commons last week but it still needs to be out there reminding MPs we will not just go away

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