1. 1 Changes To State Retirement Pensions

2. 2 What’s Changing  Rise in State Pension Age Knock on effects for Pension Credit, Winter Fuel Payment, HB/CTB Personal Allowances, Concessionary Travel  Simpler, more equal pensions Increased entitlement

3. 3 Rise in State Pension Age April  For women - age rises from 60 to 652010 - 2020  Age for pension credit etc* rises 2010 - 2020 with women’s state pension age  For all - age rises from 65 to 68 2024 - 2046 * Winter Fuel Payment, HB/CTB Personal Allowances, Concessionary Travel NHS Benefits currently stay at age 60, may be change in future

4. 4 Simpler, more equal pensions April  Simpler contribution rules2010  Less qualifying years needed2010  New weekly credits for parents & carers2010  More rights for civil partners, wives & husbands2010  Abolish adult dependant increase2010  Simplify State Second Pension2010 - ?  Increase basic pension with earnings 2012 ?

5. 5 When do changes begin? Changes always start at beginning of National Insurance Contribution Year 6 th April

6. 6 State Pension Age WomenMen Until 201060 65 2010 – 2020 phased 65 From 20206565 2024 – 20266666 2034 – 20366767 2044 – 20466868

7. 7 Contribution Condition New Rules from April 2010  Paid, ‘treated as paid’ and credited contributions all count equally  30 qualifying years are needed for a full basic pension  1/30 th of full basic pension is paid for each qualifying year

8. 8 Contribution Conditions Previous Rules 1ST CONDITION Paid or treated as paid 1 year's contributions 2ND CONDITION Paid, treated as paid or credited Enough qualifying years across working life Both conditions had to be met

9. 9 Contribution Conditions Previous Rules  Number of qualifying years needed for full basic pension Women 39 Men 44  Minimum number of qualifying years (25%) needed for any Basic Pension to be paid

10. 10 Home Responsibilities Protection From April 2010  Weekly Credits if one of the following applies: Child benefit for a child aged under 12 Foster parent Caring for a disabled person & not on carer’s allowance  Previous years’ HRP converted to credits

11. 11 Home Responsibilities Protection Previous Rules  Reduced number of qualifying years needed for full basic pension  Awarded for each complete tax year where one* of the following applies: Child benefit for a child aged under 16 Foster parent Caring for a disabled person (see CPAG p752) * A combination is allowed in some circumstances

12. 12 Marital Status & Pensions New Rules from April 2010 Spouses & Civil Partners -reduced rate basic pension (Cat B) on NI of spouse / civil partner Separated Spouses & Civil Partners -reduced rate basic pension (Cat B) on NI of spouse / civil partner For men & civil partners, spouse / civil partner must be born after 5 th April 1950 Previously only wives qualified for these Cat B pensions

13. 13 Marital Status & Pensions New Rules from April 2010 Cat B pensions can be claimed where spouse / civil partner has deferred their pension Previously Husband had to claim pension for wife to claim Cat B

14. 14 Adult Dependant Increase  Claimed for spouse / civil partner under pension age  Abolished from 6 th April 2010

15. 15 Worst Deal  Still living with spouse / civil partner or separated Can increase basic pension up to 60% of their basic pension when they reach SP Age (CAT B) Better deal  Divorce Can increase basic pension up to a full basic by substituting chunk of ex’s NI record for yours (CAT A) Best Deal  Bereavement Can increase basic, additional and GRB For all deals - amount depends on your spouse’s / civil partner’s NI - only NI of last spouse / civil partner can be used For better or worse?