Creating Wealth, Making Money, Investing Wisely, Pensions

The State Second Pension (S2P) was introduced by the Child Support Pensions and Security Act of 2000.  It was put in to replace the State Earning Pension Scheme (SERPS).  SERPS was set up in 1975 and began in 1978.  They are independent of the Basic State Pension Scheme and based on a proportion of earnings during the individual’s lifetime, so the State Second Pension Scheme replaced SERPS.  The S2P will initially start as related to earnings but with three rates that will build for each tax year depending on the individual’s earnings.