What is SERPS?

SERPS is the State Earnings Related Pension Scheme. This ran from  1978 to April 2002.

SERPS is a second pension paid by the state on top of the basic State Pension. You will build up a SERPS pension if you paid any National Insurance contributions during this time – as long as:

• you were not a member of a contracted-out pension scheme
• you had not opted out of SERPS and instead had contributions from the state paid into a personal scheme of your choice.

Unlike the basic state  pension, any SERPS pension will depend on your earnings.

Although SERPS has now been replaced by S2P you will still receive a SERPS pension if you have the right contributions record. People will be retiring for the next 40 years or so who will receive a SERPS pension.

One advantage of a SERPS pension is that you can pass some of it on to a surviving spouse.

Here on the Pension Service website is a good source of further information.