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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.

Pension Reform - Changes to state pension and pension credits

In addition to the changes to the UK state pension age, there will be several important changes to the state pension itself.  These changes will apply to men born from 6th April, 1945 and women born from 6th April, 1950:

For many increasing the age from which we can draw state pension will be unpopular, although it is widely-believed to be necessary, other countries have already or are making similar changes.

There are two reasons for this:

The Introduction of NEST – Existing proposals

• From 2012 it will be law that all employers in the UK will have to offer a workplace pension scheme to their eligible employees, unless they operate an alternative ‘qualifying' scheme.
• NEST is designed to be low cost pension scheme any employer can use to meet their duties. 
• Initially the Annual Management Charge was set at 0.3%, but is now likely to be around 0.5%.
• NEST, will operate as an occupational (trust-based) pension scheme, with a Government appointed body acting as the Trustee Board. ·         It is intended as a pension vehicle for lower earners who do not have access to a good company scheme.
• They will have a limited fund range, with a default fund for those who do not make a choice.
• There will be a minimum contribution of 8% of band earnings, and a maximum contribution of £3,600 (increased with earnings from 2005). 

Entry will be by auto enrolment.

It is estimated that around 7 million people are currently under saving or not saving at all for retirement.  

In 2003, NHS Employers began a joint review of the NHS pension scheme on behalf of NHS organisations, the Department of Health, the NHS Pension Agency and the National Assembly for Wales.

On 21 September 2007 the agreed changes to the NHS scheme were announced which will see the continuation of the current NHS Pension Scheme with some amendments from 1 April 2008 and the creation of a new NHS Pension Scheme for members joining NHS pensionable service from 1 April 2008.

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