Started in 1978, a State Earnings Related Pension Scheme, also known as SERPS, was a government pension scheme that allowed people extra provisions for retirement alongside the state pension. The amount you’d receive from SERPS depended on how much you’d earned throughout your work-life, and you’d only be eligible if you made Class 1 National Insurance Contributions.
You see, although the ordinary state pension is available for every eligible citizen in the UK, it is generally considered to be insufficient for life in retirement. In 2002 SERPS was replaced by the State Second Pension.Speak with a Claims Handler
As we say, SERPS were created as a reward for workers, allowing them to have more in retirement in addition to the state pension.
In a nutshell, SERPS scheme members received an extra pension of 25% of their earnings (above an earning limit). The upper earning limit was around seven times the lower one. Later, the amount was reduced to 20% for those retiring after 2010.
Contracting out (sometimes called opting out) of SERPS meant that people partially or completely gave up their SERPS pension benefits in exchange for a higher private pension and paying smaller National Insurance qualifications (or redirected NI contributions).
Sadly, some people received the wrong advice when it came to SERPS, and may now be worse off in retirement because of it.
Usually, this is because they were told to Opt-Out of SERPS by brokers or financial advisers.
You MAY be able to claim for SERPS compensation if:
If you paid Class One National Insurance contributions you might have a SERPS pension, or have already opted out of SERPs.
To check if you have a SERPS pension, login to your Personal Tax Account with HMRC which should show you your status. It may be that you need to create an account, in which case you will likely require your NI number, a recent payslip or P60, and a valid UK passport.
If you are entitled to a SERPS pension, you can start drawing it when you reach pensionable age. Since April 2016, anybody eligible for a SERPS pension may receive a single payment combined with their State Pension.
Through the current additional state pension, the maximum amount you could get is £176.41 per week. Of course, whether you’re eligible for the maximum amount depends on how long you were contracted into your SERPS, and how much you earned throughout your working life.