Who loses out then? Existing pensioners and those who reach their state pension age (SPA) before the new scheme is introduced in 2017.

They will be excluded from the new scheme and many have already expressed their resentment at what they see as being treated as ‘second-tier pensioners’. Expect a political backlash on this.

By pushing the original start date from 2015 to 2017 there will be more people who will have reached their state pension age in the intervening period and will now not qualify for the new pension.

There will also be a minimum NI qualifying period of 10 years.

There is also likely to be a ‘cliff-edge’ effect where someone who reaches their SPA the day before the implementation date could be awarded a pension some 40% less than someone who reaches SPA the day after.

The position is not clear on those many thousands who have accrued rights to the state pension (S2P formerly SERPS) and would have qualified for a total pension in excess of the new rate under the old rules.

Will they be limited to the new pension rate, will they still receive the higher rate and how, when and for how long will this be allowed?

Info-warrior (via website).