Additional Pension

There is a second ‘tier’ to the state pension, based on earnings, that gives you extra money when you retire.  The scheme started in 1978 and until April 2002 it was known as SERPS (State Earnings Related Pension Scheme).  In April 2002 SERPS was replaced by the Second State Pension (S2P), although any rights built up under SERPS prior to this are protected.

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S2P provides a more generous pension than SERPS to people with low or modest earnings, and people who are receiving Incapacity Benefit, or Home Responsibilities Protection or Carer’s Allowance may also be credited into S2P. 

For more information on SERPS and S2P and how it is calculated go to The Pension Service website.

Anyone who paid ‘graduated national insurance contributions’ between April 1961 and April 1975 may also receive a small Graduated Pension on retirement.