Part VIII – State Pensions
60.This Part deals with a number of changes to be made to State Pensions. It allows that, where a person is entitled to more than one State Pension, they will be able to choose which of these they wish to receive.
61.Currently, if a person does not claim their State Pension from the date they reach pensionable age, either because he is working or for other reasons, he will not receive a pension for the period between pension age and the date of claim. Instead, he will qualify for an incremental increase to his weekly pension from the point at which he does claim. The current rate of the rise in increments is 7.4%, the Order provides for this to be raised to 10.4%. Pensioners will also be given the option of receiving a taxable lump sum (after at least 12 months deferral) comprising the pension foregone and a rate of return 2% above base rate.
