i dont understand state pension paperwork can

building

anyone help with these terms so i can interpret what the pension forecasting division are actually trying to say! thanks in advance:
basic state pension(fine then it says...
additional state pension (what is that????)
graduated retirement benefit (what is this???)

Debt_Free_Chick

building wrote:

anyone help with these terms so i can interpret what the pension forecasting division are actually trying to say! thanks in advance:
basic state pension(fine then it says...
additional state pension (what is that????)

It's SERPS - State Earnings Related Pension, which is the earnings related pension from 1978 up to 2002 and the State Second Pension (S2P), which is the earnings related pension from 2002

graduated retirement benefit (what is this???)

This was an extra pension based on NI paid between 1961 and 1975.

Hope this helps, but post back if you have any more questions

SAISCO

GRADUATED RETIREMENT BENEFIT IS BASED ON YOUR GRADUATED NATIONAL INSURANCE CONTRIBUTIONS YOU PAID WHEN THE GRB SCHEME EXISTED BETWEEN 1961 - 1975 IF YOU WERE AN EMPLOYEE DURING ANY PART OF THIS PERIOD AND PAID GRADUATED NI CONTRIBUTIONS YOU WILL GET GRADUATED RETIREMENT BENEFIT.
ADDITIONAL STATE PENSION IS AN ADDITIONAL STATE PENSION ELEMENT OF THE STATE PENSION. YOUR RIGHT TO AN ADDITIONAL STATE PENSION DOES NOT DEPEND ON YOUR RIGHT TO A BASIC STATE PENSION. YOU CAN CONTRACT OUT OF ADDITIONAL STATE PENSION BY
a) BEING A MEMBER OF AN AOCCUPATIONAL PENSION SCHEME
OR
b) HAVING A PERSONAL PENSION PLAN THAT SATISFIES CERTAIN CONDITIONS.
ADDITIONAL STATE PENSION IS PAID WITH THE BASIC STATE PENSION.

building

as SERPS pension be calculated. would this be based on my old company's pension scheme which i had going for a while (the employer set up the scheme but now am self employed and have never contributed to it either). it looks minimal on my paperwork at present at 56 pence too!!! if it refers to my private pension which am looking into i suppose i would need to speak to financial adviser about this amount? thanks in advance for your help.

Debt_Free_Chick wrote:

It's SERPS - State Earnings Related Pension, which is the earnings related pension from 1978 up to 2002 and the State Second Pension (S2P), which is the earnings related pension from 2002



This was an extra pension based on NI paid between 1961 and 1975.

Hope this helps, but post back if you have any more questions

margaretclare

building wrote:

as SERPS pension be calculated. would this be based on my old company's pension scheme which i had going for a while (the employer set up the scheme but now am self employed and have never contributed to it either). it looks minimal on my paperwork at present at 56 pence too!!! if it refers to my private pension which am looking into i suppose i would need to speak to financial adviser about this amount? thanks in advance for your help.

No, it wouldn't be based on your company pension or private pension. It would be based on your taxable earnings.

SERPS can be jolly well worth having. My husband gets full SRP and he also gets SERPS because he was never contracted-out, and the SERPS is almost as much as the basic SRP. So instead of £80-some a week he gets just over £160.

Aunty Margaret

CIS

Additional Pension is the earnings related part of the state pension, based on earnings from 1978 up until the current date.

The scheme has changed name from SERPS to State Second Pension (S2P), although it is all referred to under Additional Pension on your forecast.

Between 1978 and 1997, any Additional Pension you would have earned based on your earnings was offset against a figure known as a Contracted Out Deduction (a government assessment of your occupationl pension value), if their assesment of your pension's value was less then the the Additional pension you would have earned on the same earnings if you didn't have the occupational pension, they paid you the difference.

After 1997, you kept anything already earned, they changed the rules so that if you had an occupational pension scheme, you didn't earn any additional pension.

Then in 2002, they changed the scheme to State Second Pension, and started to allow people in company pension schemes to earn additional pension again.