The most basic link between contributions and benefits was that between the single person’s basic pension (the Category A retirement pension), and the lower earnings limit (LEL). When the scheme was devised, it was planned that contributions on earnings equal to the basic pension should buy entitlement to the basic pension on retirement (in those days, contributions and benefits were both at a flat rate). The link was finally technically broken by the Pensions Act 2007, s. 7 , with effect from 6 April 2011.

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.