Akademik

State Earnings-Related Pension Scheme (SERPS)

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. Financial Services Glossary

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. Financial Services Glossary

SERPS SERPS [sɜːps ǁ sɜːrps] noun FINANCE

state earnings-related pension scheme; in Britain, a former government arrangement for getting a pension (= income after you stop working) that depended on how much you paid while you were working. SERPS was in addition to the basic pension. In 2002 it was replaced by the State Second Pension