New rules which came into force in April this year aimed at simplifying pensions have neglected one area: the state second pension (S2P).
The S2P is the state-run top-up pension scheme linked to earnings. It replaced Serps – the state earnings related pension scheme – in 2002 and offers workers the chance to sacrifice a |
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guaranteed benefit provided by the government for an annual rebate, which they can pay into their own private pension. These rebates are known as ‘contracted out’ or ‘protected rights’ benefits and can be invested in any ‘appropriate pensions scheme’ identified by the government. |
