State Earnings Related Pension Scheme (serps)
STATE EARNINGS RELATED PENSION SCHEME (SERPS) SERPS was that part of the State Pension Scheme that related to earnings between the National Insurance Lower and Upper Earnings Limits. The Scheme commenced in 1978 with the intention that employees could accrue a maximum of 25% of ‘revalued relevant earnings’. The Social Security Act 1986 reduced this to a maximum of 20% introduced over a transitional period from 1999/2000. The State Second Pension Scheme (S2P) replaced SERPS on The 6th April 2002. Employers with pension schemes, which met certain conditions, were able to contract scheme members out of SERPS (S2P). With effect from 6th October 2002, Widows and Widowers entitled to SERPS based on a deceased partner’s contributions will have their entitlement reduced to a maximum level of 50%. The reduction will apply in full to those who reach pension age on or after 6th October 2010 and will be introduced in stages linked to the contributor’s date of birth. The reduction is to be applied in respect of the spouse who dies first. The age of the surviving spouse is not relevant and the rule is to be applied equally to men and women. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS SERPS Widows’ and Widowers’ rebate Date of birth of contributor SERPS entitlement Men born Women born prior to 06/10/1937 prior to 06/10/1942 100% 06/10/1937 to 05/10/1939 06/10/1942 to 05/10/1944 90% 06/10/1939 to 05/10/1941 06/10/1944 to 05/10/1946 80% 06/10/1941 to 05/10/1943 06/10/1946 to 05/10/1948 70%
06/10/1943 to 05/10/1945 06/10/1948 to 05/10/1950
60%
06/10/1945 onwards
06/10/1950 onwards
50%
STATE SECOND PENSION (S2P) S2P replaced SERPS in April 2002 and will no longer be payable to anyone whose state retirement occurs on or after 6th April 2016. No printing, copying or reproduction permitted.
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