Definitions for "State Earnings Related Pension Scheme"
Keywords:  serps, pension, april, scheme, uel
This is the second tier to the State provision of retirement benefits. It is available to employees who pay National Insurance contributions. If a final salary scheme is 'contracted out' of SERPS, this means that the scheme guarantees to ensure that the benefits members will receive, at normal retirement age, will equal or exceed what they would have had from the State. The advantage, from the members' point of view, is that they pay a reduced NI contribution to the State. SERPS is due to be replaced shortly by the State Second Pension (S2P).
The additional pension provisions of the state pension scheme.  Has been replaced by the State Second Pension.
People working for an employer can earn this extra state pension. They pay extra national insurance as their earnings rise above a lower limit and some of this extra national insurance is for the increased pension.