13 September 2006 - Consultation on removal of protected rights in defined contribution schemes
A consultation begins today on Government proposals to remove the rules that apply to protected rights accrued prior to the scheduled abolition of contracting out for Defined Contribution (DC) schemes.
The abolition of contracting out of the State Second Pension for DC schemes was announced in the recent Pensions White Paper and will come into force at the same time as the Basic State Pension is uprated by earnings.
The removal of all the rules applying to protected rights would mean these rights can be treated in the same way as other scheme rights, providing a major contribution to the overall deregulation programme.
The consultation will also cover the operational arrangements necessary for achieving the smooth abolition of DC contracting out.
Notes to Editors
- The Consultation period will run from 13th September 2006 to 13th October 2006. Copies of the consultation document can be obtained from: www.dwp.gov.uk/consultations/2006
- The White Paper, Security in retirement: towards a new pension system
was published on 25 May 2006 and can be obtained from the DWP website at:
www.dwp.gov.uk/pensionsreform/whitepaper.asp
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