additional state pension


additional state pension
A top up state pension designed to supplement the basic state pension. Now known as the state second pension (S2P), additional state pension used to be called the state earnings-related pension (state earnings-related pension scheme, SERPS). It is currently calculated according to an employee's length of service and salary, but the government proposes to move to a flat-rate basis of accrual from 2012. Employees contribute to S2P through payment of class 1 national insurance contributions (NICs).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.