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| Version 1 | Version 2 |
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| Flat-rate pensions plan revealed | Flat-rate pensions plan revealed |
| (about 4 hours later) | |
| Details of the government's plans to introduce a flat-rate pension by 2017 - equivalent to £144 per week in today's money - have emerged ahead of an official announcement next week. | Details of the government's plans to introduce a flat-rate pension by 2017 - equivalent to £144 per week in today's money - have emerged ahead of an official announcement next week. |
| The self-employed and some women could benefit from the changes to pensions. | The self-employed and some women could benefit from the changes to pensions. |
| But some workers will pay hundreds of pounds a year more in national insurance to fund the shake-up. | But some workers will pay hundreds of pounds a year more in national insurance to fund the shake-up. |
| Government changes to how the state pension is funded will be set out in a White Paper to be published on Monday. | Government changes to how the state pension is funded will be set out in a White Paper to be published on Monday. |
| Plans for a new flat-rate state pension were published in April 2011, and seen as the biggest overhaul of the system for decades. | Plans for a new flat-rate state pension were published in April 2011, and seen as the biggest overhaul of the system for decades. |
| 'Contracting out' | 'Contracting out' |
| The Daily Telegraph reported that more than six million workers would pay higher NI contributions under the new system. | The Daily Telegraph reported that more than six million workers would pay higher NI contributions under the new system. |
| Those affected are expected to include around 1.4 million private sector staff enrolled in final salary schemes and contracted out, said the Telegraph. | Those affected are expected to include around 1.4 million private sector staff enrolled in final salary schemes and contracted out, said the Telegraph. |
| The plan would bring "contracting out" arrangements to an end - where some people pay lower National Insurance contributions because their second state pension is contracted out to their company final-salary pension scheme. | The plan would bring "contracting out" arrangements to an end - where some people pay lower National Insurance contributions because their second state pension is contracted out to their company final-salary pension scheme. |
| As a result, these people's NI bill would rise, but their state pension would also be greater. | As a result, these people's NI bill would rise, but their state pension would also be greater. |
| The Telegraph reported another five million public sector workers in similar schemes would also pay higher NI. | The Telegraph reported another five million public sector workers in similar schemes would also pay higher NI. |
| According to financial company Hargreaves Lansdowne, quoted in the Telegraph story, an employee on £25,000 a year will pay an extra £270 in national insurance. For someone paid £40,000, the increase will be £481. | According to financial company Hargreaves Lansdowne, quoted in the Telegraph story, an employee on £25,000 a year will pay an extra £270 in national insurance. For someone paid £40,000, the increase will be £481. |
| However, there are also beneficiaries under the scheme. | However, there are also beneficiaries under the scheme. |
| Some groups, including women who have been in and out of the workforce due to motherhood, part-time workers and carers, will gain. | Some groups, including women who have been in and out of the workforce due to motherhood, part-time workers and carers, will gain. |
| Many women, and the self-employed, are currently penalised for not making full national insurance contributions. | Many women, and the self-employed, are currently penalised for not making full national insurance contributions. |
| Pensions expert Tom McPhail, of Hargreaves Lansdowne, said many workers would do better out of the new system, despite some having to pay more national insurance. | Pensions expert Tom McPhail, of Hargreaves Lansdowne, said many workers would do better out of the new system, despite some having to pay more national insurance. |
| "We will ultimately move to a much simpler system - it'll be a more even system, fairer, everybody will get more closely aligned benefits, so the long term outcome will be much better for everybody," he said. | "We will ultimately move to a much simpler system - it'll be a more even system, fairer, everybody will get more closely aligned benefits, so the long term outcome will be much better for everybody," he said. |
| "But we have a very complex system at the moment, so to get from here to there is going to require quite a lot of recalculations and adjustment, it'll be a lot of work, and there'll be some winners and losers from all of that." | "But we have a very complex system at the moment, so to get from here to there is going to require quite a lot of recalculations and adjustment, it'll be a lot of work, and there'll be some winners and losers from all of that." |
| In the long-term, the government hopes the new scheme will save it billions of pounds. | In the long-term, the government hopes the new scheme will save it billions of pounds. |
| The Department for Work and Pensions confirmed that under a single-tier pension there would be no contracting out so workers would pay more national insurance, but as a result they would get a better state pension. | The Department for Work and Pensions confirmed that under a single-tier pension there would be no contracting out so workers would pay more national insurance, but as a result they would get a better state pension. |
| However, if a person has paid into a second state pension already then they will get the money back, a spokesman said. | However, if a person has paid into a second state pension already then they will get the money back, a spokesman said. |
| More details will be made public on Monday when the official announcement is made, he said. | More details will be made public on Monday when the official announcement is made, he said. |