Second State Pension

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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 ?
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.
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.