Pension Reform - Changes to State Second Pension (S2P / SERPS)

The State Second Pension, formally SERPS (State Earning Related Pension Scheme), was introduced in 197, and was renamed State Second Pension (S2P) in 2002.

At present, there is a link between past earnings and the level of S2P an individual accrues. This payment is made in addition to the basic state pension.

This is going to be gradually changed until 2030, from which date, the S2P payment will be a flat rate on top of the state pension. The link to past earnings will be severed.

The plan is that for each year's work completed, an extra £1.50 per week will be paid on top of the state pension - up to a maximum of 40 years, which equates to £60 per week.

This flat rate will gradually be introduced between 2012 and 2030. S2P payments will be linked to prices (inflation), not to earnings.

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