Pensioners to lose payment choice

10/11/2009

People claiming their pension from next April will no longer be able to choose to receive it in advance.

The BBC reports that a state retirement pension is usually paid four weeks in arrears but individuals can choose to have it paid weekly in advance.

This will no longer be the case as part of major pension rules changes from 6 April 2010.

The Department for Work and Pensions said the new system would save £10m a year by 2020.

A DWP spokesman stressed this was not primarily a money saving measure but said: "Paying in arrears will reduce the amount of money that the Department overpays and has difficulties recovering when a customer dies."

Pensions minister Angela Eagle told Parliament, "Existing recipients of state pension and pension credit will continue to have a choice about how frequently they are paid."

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