State Earnings Related Pension Scheme - The earnings related part of the state pension scheme, which provides benefits which are additional to the basic state pension.
A government scheme introduced in April 1978 which enables employees (but not the self-employed) to top up the basic pension they receive on retirement with additional pension payments based on their earnings.Employees make payments to SERPS by way of Class 1 National Insurance (NI) contributions. They can "contract out" of SERPS and pay Class 1 contributions via a rebate which may be invested in an occupational pension or a personal pension plan.SERPS was replaced in April 2002 with the "State Second Pension" which is designed to give more to the lower paid and middle earners, carers and the long-term disabled with broken work records. Whereas with SERPS, the more you earn, the higher your pension, S2P operate a flat rate which means that high earners will be better off opting for private pension schemes.
State Earnings Related Pension Scheme : the earnings related part of the state pension scheme, which provides benefits which are additional to the basic state pension.
a government scheme introduced in april 1978 which enables employees (but not the self-employed) to top up the basic pension they receive on retirement with additional pension payments based on their earnings.employees make payments to serps by way of class 1 national insurance (ni) contributions. they can "contract out" of serps and pay class 1 contributions via a rebate which may be invested in an occupational pension or a personal pension plan.serps was replaced in april 2002 with the "state second pension" which is designed to give more to the lower paid and middle earners, carers and the long-term disabled with broken work records. whereas with serps, the more you earn, the higher your pension, s2p operate a flat rate which means that high earners will be better off opting for private pension schemes.
State Earnings Related Pension Scheme