State Earnings-Related Pension Scheme

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State Earnings-Related Pension Scheme

Also called SERPS. A voluntary state pension scheme formerly available to citizens of the United Kingdom. It granted higher payments to pensioners following retirement in exchange for higher National Insurance contributions. Payments were based on average earnings over a pensioner's career. It was replaced in 2002 by the Second State Pension, which offers higher benefits to lower and middle income pensioners.
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It allowed you to opt out and have your national insurance contributions, as well as an "incentive", which would have gone to provide a SERPS pension, transferred to a private pension company instead and invested at your own risk.
You don't say when you were a member of SERPS but, depending on timing, you could have contracted out of both a final salary and money purchase scheme.
To trace your pensions and to find out if you have ever contracted out of SERPS or S2P, all you need is your National Insurance number and, if possible, any relevant documentation.
11 from SERPS based on his National Insurance contributions to date.
Commentators suggest that those earning less than pounds 10,300 will be better off contracting in and those earning between pounds 10,300 and pounds 24,600 may be better off contracting back in after April 6 when the new State Second Pension is launched to replace SERPS.
Since SERPS was introduced by Labour Pensions Minister Barbara Castle 21 years ago it has suffered repeated attacks by the Tories.
Barbara Castle, Jack Jones and Rodney Bickerstaff - all of these have over the years strived to persuade the Government of the day to restore the link with average earnings and to improve SERPS, but without success.
I was in SERPS since 1978 and at no time was I told about the cut.
SERPS was set up in 1978 to provide a state second pension for those without occupational or personal pension schemes.
SERPS provide benefits to executives in excess of restrictions imposed by qualified plans as a result of OBRA'93 (the Omnibus Budget Reconciliation Act of 1993).
This arises from a change in the rules for the earnings related state pension SERPS, made in 1986, but which the Department of Social Security made no move to publicise for ten years.
It hasn't yet cleared up the mess it caused when it launched Personal Pensions in a bid to privatise SERPS - the State Earnings Related Pensions Scheme - nine years ago.