Tories release plans for pensions

The Conservative Party has released its Manifesto for 2010, outlining its plans to "reinvigorate" occupational pensions.

In its manifesto, Your invitation to join government, which does not carry any real surprises, the Tories have pledged to hold a review to bring forward the date at which the state pension age starts to rise to 66, although this will be no sooner than 2016 for men and 2020 for women.

Public sector pensions above £50,000 will be capped, and the Party has promised to work with trade unions, businesses and others to address the "growing disparity between public sector pensions and private sector pensions, while protecting accrued rights".

The effects of the abolition of the dividend tax credit for pension funds will be reversed by the Tories "when resources allow", and moving away from the generous MPs' final salary pensions will be consulted on by the Party and the Independent Parliamentary Standards Authority.

The Conservatives have reiterated that they will be ending the compulsory annuity rules at age 75, and will also "stop the spread of means testing by restoring the link between the basic state pension and average earnings".

The political party added that it would also work with employers and the industry to support auto-enrolment into pensions, a change coming into play with the 2012 pensions reforms.

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