This scheme was introduced in 1978 for employed (not self-employed) people. It is in addition to your basic State pension. How much you get depends on your earnings. Only about 1/4 of working people are in SERPS, the rest have contracted-out.

A top-up pension scheme to boost the state basic pension. Employees can build up an entitlement to SERPs by paying National Insurance Contributions on part of their earnings. SERPS was replaced by the State Second Pension (SP2) in April 2002, which is designed to provide a better pension than SERPs for people on a low income. People on moderate to high incomes will be encouraged to contract out of the SP2 scheme.

An optional top-up pension designed to boost the basic state pension that is provided by the government to everyone who has made enough National Insurance Contributions. The rules for opting in and out of Serps are very complicated. For more information try the Department of Social Security's web site: www.dss.gov.uk.