S.e.r.p.s

[kloofnek]

Will some kind person explain to me ...in simple form please..what exactly is S.E.R.P.S

[kloofnek]

From what she said,it must be,she doesn`t actually know how much..she never prys into his financial situation...probably a rare thing in a woman but she is a very private person .

[THECORBYLOON]

An employer's pension scheme had to be at least as good as the state scheme and it had to be an amount known as the Guaranteed Minimum Pension (GMP) but folk could not get the Additional Pension AND the GMP at the same time. Quite often the employer's scheme was better than the state one so although the Additional Pension was reduced or extinguished by the GMP, the claimant was often better of when the state and employer's pensions were added.

Folk who paid into an employer's scheme paid contracted-out NI and the rates were lower than for those who paid the regular NI.

[kloofnek]

All too confusing for me!!!My son pays into his Employers Pension Scheme,when he gets his annual run down,how much he may get on retirement etc, to me ,it doesn`t seem worth it...although I know from experience,it is.
Is this what is also called an "occupational pension"?

[Hopkirk]

HC, we are both correct, and incorrect.

to quote your answer:


" You'll get a rebate on your national insurance contributions but this will go towards building up the pension scheme as a whole rather than to you personally "

In other words, you paid the SAME NI contributions, but some of it was rebated - but not back to you but to your pension.

Your payslips would have shown the same NI whether you were contracted out or in.

[THECORBYLOON]

HOPKIRK this link confirms the Cat D (contracted-out) rate is lower than Cat A https://www.gov.uk/national-insurance-contributions-for-employers/national-insurance-contribution-rates

[boxtops]

It depends on your son's pension scheme, kloof - the sums should increase as the years go on, and there should be a lump sum as well as the pension at the time he takes it.

[Hopkirk]

I stand corrected, TCL

[Peter Pedant]

we have sort of drifted off SERPS kloofje
and onto schemes that do and dont have it....

NHS pension I think didnt, but that was not really your q of what is it ?