A THE Government doesn't plan to take away money from anyone who has already built up a state second pension
. This means some people will receive more than the new PS144-a-week flat rate.
A Government Green Paper proposes: Replacing the basic state pension, * currently pounds 102.15 a week, and the earnings related State Second Pension
(formly SERPS) with a single flat rate pension.
The Pensions Commission estimates that such a reform would cost an additional 3.8% of GDP by 2043 relative to current projections (or 2.5% of GDP if the state second pension
Phone the Inland Revenue and find out if you are a member of S2P - the State Second Pension
I am guessing that you are a member of a pension scheme which was contracted out of the State Second Pension
. The State Second Pension
(S2P), and its predecessor the State Earnings Related Pension Scheme (SERPS), have been around since 1978 providing an extra pension in addition to the basic old age pension.
The state pension as it stands: The current system as we know it involves two parts, the basic state pension and state second pension
. The basic state pension gives those who have reached the Governmentdefined retirement age a weekly fixed income; the most one person could receive currently through their state pension is PS115.95 per week.
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.
QI UNDERSTAND that the new flat rate state pension is to start from April 2016, but what about the money I've already paid towards the state second pension
? ATHE Government doesn't plan to take away money from anyone who has already built up a state second pension
It can be topped up by a State Second Pension
, or Serps ?