Serps/S2P with flat rate pension

[Deleted User]

I'm a bit confused about what is to happen to Serps/S2P for people who retire before April 2017. My partner will be 65 in March 2017 and he has made large contributions in serps and S2P while working. Consequently, he will have a larger state pension than the £144 flat rate payment. Can someone please tell us if people like my partner are allowed to keep the additonal contributions? If not, he will be losing out.

SnowMan

Your partner reaches SPA in March 2017 before the new scheme comes in as at the earliest it will be introduced in April 2017.

So there is no change to state benefits they are just paid on the old basis. He will get paid his basic state pension and additional pension under the old system and it won't matter if this is more or less than £144.

[Deleted User]

Thanks Snowman for your reply. That's what we thought, but than we were confused when we read that people who have Serps/S2P may not be allowed to keep all the contributions. So they may receive a lower pension than they would have received before these pension reforms were introduced.

SnowMan

[quote=[Deleted User];58667517]Thanks Snowman for your reply. That's what we thought, but than we were confused when we read that people who have Serps/S2P may not be allowed to keep all the contributions. So they may receive a lower pension than they would have received before these pension reforms were introduced.[/QUOTE]

In simple terms anyone who reaches SPA before the scheme is implemented (at the earliest April 2017) will get the same amount of state pension as they were originally expecting.

Anyone who reaches SPA after the scheme is implemented (at the earliest April 2017) will get to keep all the state pension (basic state pension and additional pension) they have accrued up to the date of implementation even if it is more than £144. So even if your partner had been a couple of months older and came under the new scheme (assuming it was implemented on time) he would have received the same pension.

Had his SPA been say 2 years after the scheme was introduced and if he had say accrued £160 at the date of implementation he wouldn't have been able to accrue any further state pension in those last 2 years after the scheme was implemented. In the old scheme he would have probably been able to accrue a bit of extra state pension in those last 2 years.

[Deleted User]

Oh I see what they mean now about some people not being able to keep all their S2P contributions. Thank you very much Snowman for your explanation - it's much clearer now :T