State second pension (S2P) | Practical Law

State second pension (S2P) | Practical Law

State second pension (S2P)

State second pension (S2P)

Practical Law UK Glossary 1-200-3464 (Approx. 6 pages)

Glossary

State second pension (S2P)

A top-up state pension that replaced the state earnings-related pension scheme (SERPS) from 6 April 2002 until being abolished on 6 April 2016 when the new state pension came into effect. S2P was an additional state pension based on an employee's national insurance contributions (NICs) and earnings. S2P was more generous for low and moderate earners than SERPS, and covered certain carers and people with long-term illness or disability. Since 6 April 2016, employees can no longer accrue any further S2P entitlement, but those who reached their state pension age before 6 April 2016 will continue to receive pension payments for the remainder of their lives.