What is the State Second Pension?

Important Update: From the 6th April 2012 you will no longer be able to contract out of the State Second Pension

The State Second Pension is money paid to you by the Government each week once you retire. The amount you get depends on your earnings and National Insurance record throughout your working life. You do not have to be getting the basic State Pension to qualify for State Second Pension.

Your  State Second Pension is also called the Additional State Pension and was previously known as the State Earnings-Related Pension Scheme (SERPS).

You may get shared State Second Pension if you divorce or have your marriage annulled after December 2000 or if your civil partnership ends.

You cannot get any State Second Pension for National Insurance contributions you pay as a self-employed earner.

You can also get Graduated Retirement Benefit if you paid enough graduated contributions during the period from April 1961 to April 1975.

Can everyone get the State Second Pension?

No. You cannot build up your State Second Pension for any period where:

• you are not working
• you are self-employed
• you earn less than a set amount a year (£4,680 for 2008/2009)
• you have contracted out of the State Second Pension and instead pay into a personal pension and earn more than £13,500 for 2008/2009
• you are contracted out of the State Second Pension and instead pay into an occupational pension scheme and earn above £31,100 (in 2008/2009).

However, in some circumstances, carers and people with long-term illnesses and disabilities can build up a State Second Pension even if they are not in work.

To find out more about contracting out of the State Second Pension – Click Here