The Additional State Pension - the State Second Pension or SERPS
State pensions are a very complex subject and this section is only intended to give an overview. If you want more detailed information, please visit the Directgov website.
This is an extra pension you may receive, depending on the amount you earn and the additional National Insurance Contributions you have made. This benefit replaced the State Earnings Related Pension Scheme (SERPS).
You may have contracted out of (left) the State Second Pension, which means that part of your National Insurance contribution could be paid into an individual or company pension. However, the government has confirmed that contracting out for this type of pension arrangement will cease with effect from 6 April 2012. If you have contracted out before then, at this date you will be automatically contracted back in.
The decision over whether to contract in or out is complex. If you need help or are unsure whether you are contracted in or out, contact your pension provider, a financial adviser or call the HM Revenue & Customs Contracting Out Helpline on 0845 915 0150.
For more information visit the Financial Service Authority's website the Money Advice Service or the Directgov website.
Eligibility
| Status | State second pension availability |
|---|---|
| Employed (earning above the lower earnings limit) | Yes |
| Unemployed | For the time you are unemployed you will not be accruing a state second pension. |
| Self-employed | For the time you are self-employed you will not be accruing a state second pension. |
| Married women who've chosen to pay reduced national insurance contributions. | No |
| Not working (due to long-term illness, disability, or if you are a carer). | You may still be able to build up entitlement. |
How much will I get?
The amount you receive depends on the amount of your National Insurance contributions and how much you earn. You can get a forecast from the Directgov website. They will normally send you forms to claim for the State Second Pension about four month before you reach the state pension age.
