Lack of information in White paper about GMP indexation ceasing via the state pension " The single-tier pension: a simple foundation for saving"

The request was refused by Department for Work and Pensions.

Dear Department for Work and Pensions,

Further to Our Ref: IR2018/15436 Date: 18 January 2019.

In your reply you said

"In response to question 5, the policy approach for treating people with pre 2016 National Insurance records was set out in the single-tier pension White Paper published in January 2013. The approach,The introduction of a Starting Amount in the new State Pension, was a key part of Pension Act 2014. "

1) Regarding paragraph above can you please send me a copy of the information or give me the paragraph number that mentions in plain English that people with GMP indexation will no longer receive GMP indexation via the state pension calculation if they reach state pension on and after 6 April 2016

Page 42
Impact of ending contracting out on employees.

As far as I can see under this section paragraphs 72 to 74 inclusive don't mention anything about the loss of GMP indexation via the state pension calculation.

2) Please send me a copy of any impact assessment that mentions GMP indexation calculation via the NSP will not be done so making people loose GMP indexation via the state pension.

Text Box 3.2: Communicating the end of contracting out

"Careful planning and proactive communications will help the three key audiences (scheme members, employers and scheme administrators) understand why the changes are happening and how they will be affected.

3)In paragraph above please give me a copy of the proactive communications to the three key audiences explaining that people with GMPs will no longer receive GMP indexation via the state pension calculation if they reach state pension age on and after 6 April 2016.
Page 47

85. This calculation will be as follows:
Single-tier valuation for people who have contracted out:

Single-tier valuation for people who have contracted out:
Number of pre-implementation qualifying years x £144 – ‘rebate derived amount’
35

As far as I can see paragraph 85 does not explain how the rebate amount was to be calculated and did not mention that it would not include consolidation of COD/GMP indexation after a person reaches state pension age even though it had become law without a start date under the 2011 Pension Act.

4)Please send me a copy of the relevant change in law under the NSP that mentions the rebate derived amount was not to include an adjustment for consolidation of COD/GMP after a person reaches state pension age as laid out in the 2011 Pension Act.

5) Please give me copies of information that mentions consolidation of COD/GMP indexation after a person reaches state pension age would not happen under the NSP and was not to be included in the calculation of the rebate derived amount as described in paragraph 85 calculation..

Regarding my original question 2

In response to question 2, consolidation was not implemented in Pensions Act 2014 because Pensions Act 2014 superseded additional State Pension and contracted out pensions by introducing the new State Pension.
I do realise that the pension Act 2014 superseded additional state pension and contracted out pensions, but only for benefit before state pension age.
You said consolidation was not implemented. That is not correct as It was partially implemented as additional state pension and contracted out pension before state pension age were consolidated into the NSP calculation. You did not define what you meant by consolidation.
To change an existing law does it not have to be mentioned in the legislation that it was being cancelled. In this case consolidation of COD/GMP indexation calculation after a person reaches state pension age (as defined in Pension Act 2011)was being cancelled.

Please send me a copy of the legislation cancelling consolidation of CODs/GMP indexation calculation after a person reaches state pension age as mentioned in Pension Act 2011.

Yours faithfully,

C. Thompson

DWP freedom-of-information-requests, Department for Work and Pensions

This is an automated confirmation that your request for information has
been accepted by the DWP FoI mailbox.
 
By the next working day your request will be forwarded to the relevant
information owner within the Department who will respond to you direct. 
 
If your email is a Freedom of Information request you can normally
expect a response within 20 working days.
 
Should you have any further queries in connection with this request do
please contact us.
 
For further information on the Freedom of Information Act within DWP
please click on the link below.
 
[1]http://www.dwp.gov.uk/freedom-of-informa...
 

show quoted sections

References

Visible links
1. http://www.dwp.gov.uk/freedom-of-informa...

no-reply@dwp.ecase.co.uk on behalf of DWP Strategy Freedom of Information, Department for Work and Pensions

1 Attachment

Dear C Thompson,

I am writing in response to your request for information, received 13th
April.

Yours sincerely,

DWP Central FoI Team