Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • May 2014
05

Single-tier state pension passed into law

Open-access content Thursday 15th May 2014 — updated 5.13pm, Wednesday 29th April 2020

The Pensions Bill became law today bringing the introduction of a simple, single flat-rate state pension ‘a step closer’, the Department for Work and Pensions said.

2

From April 2016, the flat-rate state pension will be set above the basic level of means-tested support, currently £148.35 per week. Until the end of the Parliament, the state pension will continue to be uprated by the ‘triple lock’ system, which increases the payment by whichever of annual earnings growth, inflation or 2.5% baseline is highest, ministers confirmed.

Pensions minister Steve Webb said the new state pension would give people confidence and clarity about what income they would get from the state in their retirement.

Under the reforms, people would need ten qualifying years of National Insurance contributions to access their state pension. Those who started their NI record after the reforms are introduced will receive the full level of the new state pension based on 35 years of contributions.

Webb said: 'The state pension reforms will benefit those who have historically done poorly under the current two-tier system.

'I want to see us build a fairer society within a strong economy. That means ensuring people have a simple, better state pension in retirement which protects them from poverty and provides a solid foundation for them to save in the future.'

DWP said it expects that, in the first ten years after implementation, around 650,000 women would benefit from the single-tier valuation of their pension at 2016, receiving around £8 a week more in state pension.

The Pensions Act 2014 also brings in other reforms to the state pension age, bereavement benefits and private pensions.

This article appeared in our May 2014 issue of The Actuary .
Click here to view this issue

You may also be interested in...

NAPF warns on pace of pension changes

The speed of change to pensions is too great to ensure member interests are protected, the National Association of Pension Funds said today.
Friday 16th May 2014
Open-access content
2

At least £15k needed for comfortable retirement, says NEST

The price of a comfortable retirement is around £15,000 a year, according to auto-enrolment scheme provider National Employment Savings Trust.
Monday 19th May 2014
Open-access content
2

Auto-enrolment 'good for older workers', says PPI

Pensions experts have urged older workers not to opt out of their workplace auto-enrolment schemes
Tuesday 20th May 2014
Open-access content
2

MPs urge early provision of pension 'guidance guarantee'

The guaranteed retirement guidance promised in the Budget should be offered to people at least 12 months before they stop work, the Treasury select committee recommended today.
Friday 9th May 2014
Open-access content

NAPF: LGPS changes must deliver flexibility and value

Local Government Pension Scheme reforms must deliver sustainable and affordable pensions in the long term, the National Association of Pension Funds has said.
Thursday 22nd May 2014
Open-access content
2

Incoming ACA chair urges higher pension savings

The incoming chair of the Association of Consulting Actuaries has said that encouraging higher pension savings would be the next priority for the professional body.
Tuesday 6th May 2014
Open-access content

Latest from Pensions

ers

By halves

Reducing the pensions gap between men and women is a work in progress – and there’s still a long way to go, with women retiring on 50% less than men, says Alexandra Miles
Thursday 2nd March 2023
Open-access content
rdth

Make My Money Matter's Tony Burdon on the practical power of sustainable pensions

Years working in international development showed Tony Burdon, head of Make My Money Matter, that sustainable pensions can harness trillions of pounds to build a better world – at a scale governments and charities can’t. He talks to Travis Elsum
Wednesday 1st March 2023
Open-access content
KV

Liability-driven investments: new landscape

What now for liability-driven investments, after last year’s crash in the market? Pensions experts Rakesh Girdharlal and Moiz Khan say it should lead to a more balanced approach
Wednesday 1st February 2023
Open-access content

Latest from Position

TPR publishes coronavirus guidance

The Pensions Regulator (TPR) has published guidance to help UK pension trustees, employers and administrators deal with the financial and regulatory risks posed by coronavirus.
Monday 23rd March 2020
Open-access content
2

Expert advice

This edition of the magazine focuses on data science and its applications, which will be a recurring theme for the IFoA.
Friday 28th February 2020
Open-access content
2

Tesla sparks fears of insurance market overhaul

That is according to a new report from Moody's, which highlights how Tesla has already started offering premiums that are up to 30% cheaper than those of mainstream insurers.
Friday 14th February 2020
Open-access content

Latest from May 2014

2

Pensions legislation dominates Queen's Speech

A Private Pensions Bill, introducing collective defined contribution schemes to the UK, was the centrepiece of today’s Queen’s speech, the last before the general election.
Wednesday 4th June 2014
Open-access content

Detected insurance fraud at record high, says ABI

More than £1.3bn of bogus insurance claims were detected in 2013 according to figures published today by the Association of British Insurers, with claims car insurance making up the majority of this amount.
Friday 30th May 2014
Open-access content
2

Labour proposes auto-enrolment extension to the low paid

A future Labour government would extend auto-enrolment to more than 1 million lower earners by reducing the threshold for inclusion in workplace pension schemes by nearly half, shadow work and pensions secretary Rachel Reeves has announced.
Thursday 29th May 2014
Open-access content

Latest from inline_local_link

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 05

2

Pensions legislation dominates Queen's Speech

A Private Pensions Bill, introducing collective defined contribution schemes to the UK, was the centrepiece of today’s Queen’s speech, the last before the general election.
Wednesday 4th June 2014
Open-access content

Detected insurance fraud at record high, says ABI

More than £1.3bn of bogus insurance claims were detected in 2013 according to figures published today by the Association of British Insurers, with claims car insurance making up the majority of this amount.
Friday 30th May 2014
Open-access content
2

Labour proposes auto-enrolment extension to the low paid

A future Labour government would extend auto-enrolment to more than 1 million lower earners by reducing the threshold for inclusion in workplace pension schemes by nearly half, shadow work and pensions secretary Rachel Reeves has announced.
Thursday 29th May 2014
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Manager - Building new team!

London (Central)
Up to £130k + Bonus
Reference
148845

Shape the Future of Credit Risk Model Development

Flexible / hybrid with 2 days p/w office-based
£ six figure salary with excellent bonus potential + package
Reference
148843

Longevity Director

Flexible / hybrid with 2 days p/w office-based
£ six figure salary with excellent bonus potential + package
Reference
148842
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ