State second pension meaning

The single tier State Pension (on and from 6 April 2016) On 6 April 2016, the Basic State Pension was overhauled and replaced by a single-tier, flat-rate pension, merging the Basic State Pension with the Second State Pension. From that date, men and women alike must have 35 qualifying years of National Insurance contributions to receive the full flat-rate amount. Marital status makes no difference to the level paid. Tax year Amount (per week) 2026/2027 £241.30 2025/2026 £230.25 2024/2025 £221.20 2023/2024 £203.85 2022/2023 £185.15 2021/2022 £179.60 2020/2021 £175.20 2019/2020 £168.60 2018/2019 £164.35 2017/2018 £159.55 2016/2017 £155.65 The Basic State Pension (before 6 April 2016) Before 6 April 2016, the Basic State Pension comprised the Basic State Pension and the Second State Pension. There was a third, minor, component known as the graduated pension that depended on graduated National Insurance contributions paid by employees while the graduated scheme ran from 1961 to...

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In this issue: Autumn Budget 2024 Brexit highlights Post-Brexit transition guidance Brexit SIs Constitutional and administrative law Judicial review State accountability and liability Public procurement Subsidy control and State aid Projects and infrastructure Management and strategic planning Information law Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Autumn Budget 2024 Autumn Budget 2024—key Public Law announcements In the Autumn Budget 2024, on 30 October 2024, the Chancellor of the Exchequer, the Rt Hon Rachel Reeves MP, set out a series of measures of interest to Public Law practitioners, touching on devolved matters, state security and intelligence, state accountability and liability, Ukraine policy, public procurement, projects and infrastructure, the state pension, and trade. Paul Maile, partner and head of planning and infrastructure consenting at Eversheds Sutherland, and Clive Weber, consultant at Wedlake Bell, provide commentary on the proposals. See:...

In this issue: Pension Schemes Bill Funding, surplus and investment Pension Protection Fund Pensions Dashboards Dates for your diary Trackers Pension Schemes Bill Call for evidence on Pension Schemes Bill launched amid concerns over Bill’s investment mandation powers The House of Commons Public Bill Committee opened a call for evidence on 8 July 2025 concerning the Pension Schemes Bill. Its line-by-line scrutiny is due to begin on 2 September 2025, with a report expected by 23 October 2025. In the interim, the Committee invites those with pertinent expertise, practical experience, or a particular interest in the Bill to send written submissions swiftly so they can be considered before the deadline. Once the Committee finishes its examination of the Pension Schemes Bill, it will no longer accept written evidence. This request follows the Bill’s Second Reading in the House of Commons on 7 July 2025, presented by the Pensions Minister, Torsten Bell, together with Under-Secretary of State Andrew...

ARCHIVED: This archived Practice Note centres on the abolition of contracting-out on a money purchase (or protected rights) basis, taking effect from 6 April 2012. It is not maintained and remains archived. For general information concerning the meaning of contracting-out, see the Practice Note entitled: What does ‘contracting-out’ mean for pension lawyers? Contracting-out on a money purchase basis before 6 April 2012 Contracting-out was the route by which an individual (whether employed or self-employed) could choose to waive accrual of the part of the State pension which, before 6 April 2016, was called the additional State pension (or Second State Pension (S2P)). Contracting-out on a money purchase basis (also known as DC contracting-out) first became possible in April 1988. A money purchase form of contracting-out required the relevant contracted-out pension scheme to grant members ‘protected rights’ in lieu of the state benefits forgone as a consequence of contracting-out. Schemes contracted-out on a money purchase basis Before 6 April 2012, protected rights could be provided through the...

Brexit impact The UK ceased to be an EU Member State on exit day, 31 January 2020. Under the Withdrawal Agreement, the state pension and benefit rights of UK nationals residing in the EU, European Economic Area (EEA) or Switzerland are protected. See: Benefits and pensions for UK nationals in the EU, EEA or Switzerland. Likewise, information on the entitlements of EEA and Swiss citizens to UK benefits and state pensions is set out at: Benefits and pensions for EEA and Swiss citizens in the UK. State pensions A state retirement pension depends on an individual’s National Insurance (NI) contribution record and may consist of up to three elements: the basic old age pension the State Second Pension (S2P—formerly the State Earnings Related Pension Scheme, SERPS) the graduated pension Payments are generally made gross, with tax collected through Pay As You Earn (PAYE) against a person’s other income, such as an occupational or private pension. Income tax can also...

FORTHCOMING DEVELOPMENT : The Pensions (Extension of Automatic Enrolment) (No. 2) Bill secured Royal Assent on 18 September 2023, becoming the Pensions (Extension of Automatic Enrolment) Act 2023 (the Act), and was published on 19 September 2023. The Act confers powers on the Secretary of State for Work and Pensions to make regulations to: lower the minimum age at which otherwise eligible employees must be automatically enrolled and re-enrolled into a pension scheme by their employers; remove the Lower Earnings Limit from the qualifying earnings band so that contributions are calculated from the first pound of earnings; and revise the requirements for the annual review of the qualifying earnings band. Adjustments to automatic enrolment eligibility will proceed following a consultation on the detailed implementation method and timing. The commencement of section 1 of the Act is set to be ‘on such day or days as the Secretary of State may by regulations appoint’. For further information, see: DWP press release, Work...