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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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This was also known as the State Earnings-Related Pension Scheme (SERPS) - now replaced by the State Second Pension.
They left the State Earnings-Related Pension Scheme (SERPS), or the State Second Pension (S2P) which replaced it, in favour of a personal or stakeholder plan because they were led to believe they would do better this way.
State Earnings-Related Pension Scheme (SERPS) was an additional state pension, calculated on National Insurance contributions and earnings.
 
 
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