IF you're an employee and want to contract back into the State Second Pension
scheme, you need to fill in a form from your pension provider.
The state second pension
is an extra amount of money you could get alongside your basic state pension.
This will also end "contracting out", where employees may opt out of the state second pension
and receive extra pension from their workplace scheme in exchange for lower National Insurance contributions from the employee and their employer.
Some people also receive the State Second Pension
, or Serps, which is the government''''s earnings-related additional pension and there is also an additional means test that tops up the pensions of the less wealthy.
Around 20m workers, mainly employed in private firms, are currently contracted into the state second pension
, which was introduced in 2003 to help those earning low wages.
THE vast majority of people entitled to the state second pension
will get less when they retire due to Coalition reforms, the TUC has found.
It can be topped up by a State Second Pension
, or Serps ?
The Coalition are also scrapping the state second pension
, which allows employees to top up their retirement pots and can take them up to PS159.
Entitlement to any earnings related state benefits such as State Second Pension
could also be affected.
Over the last 20 years, most employed people could choose to be contracted out of the State Second Pension
, or its predecessor known as SERPS, into a personal or stakeholder pension.
The second, more radical option, involves merging the basic pension and State Second Pension
into one, payable at about pounds 140 per week in today''s prices.
Under the "more radical" of two options set out in a consultation paper, the new payments would be funded by scrapping the state second pension
and the savings credit.