On 3 February 2004, Andrew Smith, Secretary of State for the Department of Work and Pensions, set out the action the Government is taking to empower individuals to make real and informed choices on working and saving for retirement. The proposals published in 'Simplicity, security and choice: Informed choices for working and saving' -

http://www.fsa.gov.uk/consumer/pensions/4_changes/changes_main.html

- are fundamental in ensuring that people get the retirement income they expect.

Additionally the Government's proposals on tax simplification would replace 8 tax regimes with a single system.

The Bill also provides for a better deal for people who chose to draw their state pension late - including a new option to take a lump sum.

This complements a wider raft of Government reforms, which empower older people to improve their retirement prospects by keeping active for longer. The state pension will stay at age 65, so no-one is forced to work beyond that. But, by tackling age-discrimination and freeing people to work part time whilst drawing a pension, the Government aims to make working longer more attractive.

The Pensions Bill also provides details of the Pension Protection Fund, which will provide new security for pension scheme members.

Commenting, Secretary of State for Work and Pensions, Andrew Smith said: "Where companies with under-funded pensions have gone bust, workers have found themselves severely short-changed on the pension they were expecting. With the Pension Protection Fund, people in pension schemes can be much surer that they will get the pension they were promised." Find out more about the Pension Protection Fund .

The Fund will be complemented by a flexible Pensions Regulator, which will make it easier for businesses to get on with running good pensions. It will focus on the under-funding, fraud and mal-administration that can threaten members' benefits, whilst minimising interference for well run schemes. Find out more about the Pensions Regulator.

Simplification measures will also make it easier for employers to provide pensions, by cutting through red tape. Schemes will be freed to set their investment strategy to their own particular characteristics, and a host of regulations around administration - including on trustees, dispute resolution and contracting-out - will be simplified.

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