Women and carers winners in new pensions bill

New legislation, which will provide a major boost to women and carers, completed its passage through the Assembly today.

From 2010 75% of women will get the full pension when they reach pensionable age, as opposed to 40%, at present. People raising children and caring for the elderly and disabled will also get credits to boost their pension.

The bill will also tie in, by 2012, or by the end of the next Parliament at the latest, pension increases with earnings as opposed to prices, which occurs under the present system. This will further help boost the size of the pension.

Speaking after Final Stage of the Pensions Bill in the Assembly, Social Development Minister Margaret Ritchie said: “The bill creates a more generous and, crucially, a fairer state pension system. For too long, women and carers have suffered on account of their caring responsibilities. The bill recognises the vital contribution they make to our society and ensures that they find it much easier to build up entitlement to a full state pension.

“I want to ensure pensioners get the best deal possible and I am very pleased that the bill will restore the link between state pensions and earnings. I am determined that pensioners in the future do not get left behind and that they will see their income rise in the same way as people in work.

“I know that there is still more work to be done, but I believe the changes we are introducing will provide a solid foundation for the future and give people confidence to plan for their retirement – whether it is in the next few years or in the distant future.”

The bill contains a number of other provisions, for example, to simplify the State Second Pension and measures dealing with private pensions. The bill provides for state pension age to increase in stages between 2024 and 2046.

The minister also paid tribute to the support she received from across the Assembly:

“I welcome the support from fellow ministers and indeed from across the assembly in securing the passage of this very important piece of legislation. It has been encouraging to see the broad consensus which was evident during the assembly’s consideration of the bill.”

Notes to Editors:

1. The Pensions Bill can be accessed at http://www.niassembly.gov.uk/legislation/primary/2007/niabill7_07.htm.
2. News Media enquiries to DSD Press Office on 028 9082 9496, out-of-hours contact EIS Duty Press Officer on 07699 715440.