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Gov Petition - Require all state pensions to be paid monthly

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  • xylophone
    xylophone Posts: 46,035 Forumite
    Part of the Furniture 10,000 Posts Name Dropper

    https://petition.parliament.uk/archived/petitions/121267

    • Government responded to this petition
      The State Pension is described in legislation as a “benefit”
      in order to root it within the existing social security framework as a
      statutory scheme paid out of monies in the National Insurance Fund.

      Some people have a negative association with the word
      ‘benefit’ as synonymous with the means test; however this legal
      description provides consistency with other contributory benefits.It is, of course, also consistent with private pensions where
      traditional pension schemes which are earnings linked such as final
      salary schemes, known as ‘Defined Benefit’ schemes. The pension paid out
      by these schemes is defined as a ‘benefit’.State Pension entitlement is based on having paid into the National
      Insurance scheme for a required number of years. However, use of the
      word “benefit” for retirement pension (latterly known as State Pension)
      has always been classified in law from the time of the1946 National
      Insurance Act, which applied from the inception of the National
      Insurance scheme. No offence is intended by the use of this term.Furthermore, the term “contributory benefit”, forms the legislative
      framework of the Social Security Contributions and Benefits Act 1992.
      Section 20 of that Act is entitled “Descriptions of contributory
      benefits”. Contributory benefits under Part II of that Act are listed,
      and the sixth is retirement pensions.In addition, the introduction of the new State Pension from 6 April
      2016 is also classified as a “benefit” under Section 1(1) of the
      Pensions Act 2014.This word is also used to describe the advantages (benefits) provided through private pension arrangements.

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