Additional State Pension

The additional State Pension is provided by the government. It can give you extra money on top of your basic State Pension. You may have a pension that 'contracts' you out of the additional State Pension. Find out more about the additional State Pension and what contracting out means.

Who gets the additional State Pension?

You can build up additional State Pension if you are below State Pension age and you are:

· employed and earning over £5,304 (from any one job)

· looking after children under 12 years old and claiming Child Benefit

· caring for a sick or disabled person for more than 20 hours a week and claiming Carer's Credit

· a registered foster carer and claiming Carer's Credit

· receiving certain other benefits due to illness or disability

If you are employed and have a pension then you may be ‘contracted out’ of the additional State Pension. This means you probably do not build up additional State Pension. Find out more in ‘Contracting out of the additional State Pension’ below.

SERPS and the State Second Pension

The additional State Pension has gone under different names in the past. You used to get additional State Pension through the State Earnings-Related Pension Scheme (SERPS).

Until you reach State Pension age your SERPS and State Second Pension will be revalued each year in line with the growth in average earnings. Once you have reached State Pension age it will then normally increase in line with prices.

See ‘SERPS and the State Second Pension’ to find out more.

Inheriting additional State Pension

If your spouse or civil partner dies, you may be able to inherit some of their additional State Pension. See ‘SERPS and the State Second Pension’ to find out how much additional State Pension can be inherited.

Contracting out the additional State Pension

If you’re an employee with annual earnings above a certain amount (£5,304 in 2011/12) you can choose to leave the additional State Pension. You can join a private pension instead. This is called 'contracting out'. It is not possible to leave the basic State Pension.

If you have a company pension, your employer should tell you if it is contracted out.

See the following link to find out more about contracting out of the additional State Pension.

Track down an old pension

If you think you may have an old pension but can't remember the details then the Pension Tracing Service may be able to help.

Date: 2015-12-24; view: 1006