The additional pension that you are entitled to other than your basic state pension is called State Second Pension. It was previously known as State Earnings Related Pension Scheme (SERPS). It is given on the basis of your circumstances and appropriate contributions you have made. Moderate and low earners were provided with highly beneficial plans by the replacement of SERPS with State Second Pension in April 2002.
After becoming an associate of a company, you may be given a chance to give up your State Second Pension. As a consequence, you will end up paying low National Insurance payments, or you may get an annual refund which will be remunerated to your private pension scheme. Such decisions should be taken after careful thinking as many financial consultants and pension firms are guiding their customers to continue their State Second Pension.
If you would like to know more about calculating your State Second Pension, you can visit the following link: www.pensioncalculator.org.ukpages/help.php. The above mentioned link also contains a Pension Calculator.
After becoming an associate of a company, you may be given a chance to give up your State Second Pension. As a consequence, you will end up paying low National Insurance payments, or you may get an annual refund which will be remunerated to your private pension scheme. Such decisions should be taken after careful thinking as many financial consultants and pension firms are guiding their customers to continue their State Second Pension.
If you would like to know more about calculating your State Second Pension, you can visit the following link: www.pensioncalculator.org.ukpages/help.php. The above mentioned link also contains a Pension Calculator.