Second State Pension

Second State Pension

A voluntary state pension scheme available to citizens of the United Kingdom. It grants higher payments to pensioners following retirement in exchange for higher National Insurance contributions. Payments are based on average earnings over a pensioner's career. It was created in 2002 to replace the State Earnings-Related Pension Scheme, which offered lower benefits to lower and middle income pensioners.
References in periodicals archive ?
But, for simplicity's sake, a further look is needed at removing the second state pension at greater speed and at ways to reduce means -testing to a much lower level than proposed.
AAS well as the basic state pension you may qualify for benefits based on contributions into the Graduated Retirement Benefit, the State Earnings-Related Pension Scheme (SERPS) and new Second State Pension.
The new idea is to replace the existing second tier state scheme SERPS, with a Second State Pension (SSP) which is primarily designed to help those on low earn ings.
But the amount you get could be affected if you contracted out of the second state pension via your occupational scheme.
The pensions White Paper, presented by pensions minister Steve Webb, proposes to simplify the pension system by entitling everyone to a standard rate of PS144 a week in today's terms, as long as they have built up enough national insurance contributions and it will do away with means testing, the second state pension and contracting out.
Many pensioners are also entitled to a Second State Pension or Pension Credit, but neither is likely to make a massive difference to your income.
From April anyone who is looking after someone for more than 20 hours a week but is not being paid to do so can qualify for the new Carer's Credit, which will count towards their entitlement for the basic and second state pension.
The Birkenhead MP was asked to present his own proposals to the Turner Commission, which focused on a universal second state pension to restore confidence and end pensioner poverty.
The money would come from a second state pension, paid to those least able to save, such as parents, carers and the low paid.
Had they not done so they would now have a nice little cushion as a second state pension on retirement.
Q I have been contracted out of what was SERPS and is now the Second State Pension through my personal pension plan for a number of years.
It would also 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.