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 the person who died would have reached state pension age under the older system (before April 6, 2016) his or her second state pension etc can be passed on, regardless of whether the widow/ widower reached state pension age under the old or new system.
But 88% of small firms supported developing the idea of a consolidated state pension which would combine the basic state provision and earnings-related second state pension.
People who go out to work are obliged either to contribute to the second state pension or to contract out by joining a private scheme.
EMPLOYERS' organisation the Confederation of British Industry came out in favour of a revamped second state pension today to help low-paid workers to a more comfortable retirement.
"Under Labour, for the first time, women and carers can save for decent pension as they are credited with an earnings base of at least pounds 11,600 in the Second State pension, in recognition of their unique contribution to society.
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. Apply for a forecast by completing form BR19.
"Second State Pension Too Complex," Financial Times, Pension and Retirement, June 18, 2002.
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.
The massive shake-up scraps the second state pension and brings in a new flat rate payment.
A Members of superannuation pension schemes are automatically contracted out of the Second State Pension (S2P) and pay a reduced rate of National Insurance.
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.
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.