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Briefing Notes
Briefing Note 20 - Should the state provide an earnings-related pension?
Many recent reform proposals have suggested strengthening the flat-rate ‘foundation pension’ and abolishing the State Second Pension. This would mean that the state no longer provides an earnings-related pension, that is, where the state gives a higher pension to higher earners compared to lower earners.
This Briefing Note looks specifically at whether the rationale that led to the introduction of an earnings-related scheme in 1978 is still relevant, and what issues are relevant today.
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