What Was SERPS?
The State Earnings-Related Pension Scheme (SERPS) was an additional state pension that ran from 6 April 1978 until 5 April 2002. It provided an earnings-related pension on top of the flat-rate basic State Pension, calculated based on your National Insurance contributions and earnings during those years.
SERPS was designed to give employees an additional layer of retirement income related to their salary. The more you earned (up to a cap) and the longer you paid NI contributions, the more SERPS pension you built up. It was particularly valuable for employees who did not have access to a workplace pension scheme.
In April 2002, SERPS was replaced by the State Second Pension (S2P), which was designed to be more generous for lower earners, carers, and people with long-term disabilities. S2P itself was then replaced by the new single-tier State Pension on 6 April 2016.
How SERPS Was Calculated
SERPS was based on your earnings between the Lower Earnings Limit (LEL) and the Upper Earnings Limit (UEL) – known as your “band earnings.” The calculation changed over the years, becoming less generous as the government sought to control costs:
| Period | Accrual Rate | Best Years Used |
|---|---|---|
| 1978–1988 | 25% of band earnings | Best 20 years |
| 1988–2002 | Gradually reduced to 20% | Lifetime average |
In the early years, SERPS was extremely generous – you could receive up to 25% of your relevant earnings as an additional state pension, and it was calculated on your best 20 years of earnings. Later reforms reduced the accrual rate and moved to a lifetime average, making it less valuable for higher earners.
How SERPS Affects Your Pension Today
Even though SERPS ended in 2002, the pension rights you built up during those years are still part of your retirement income. How they are paid depends on when you reached (or will reach) State Pension age.
If You Reached State Pension Age Before 6 April 2016
You receive your SERPS entitlement as Additional State Pension, paid on top of your basic State Pension. The two amounts are paid together as a single payment. For 2026/27, the full basic State Pension is £176.45 per week, and your Additional State Pension is added on top. There is no cap on the combined amount.
If You Reached State Pension Age On or After 6 April 2016
Your SERPS entitlement was folded into the calculation of your new State Pension “starting amount.” HMRC calculated what you would have received under the old system (basic pension plus SERPS/S2P) and compared it with what you would get under the new system. You were given the higher of the two amounts as your starting point.
If your starting amount was above the full new State Pension rate (£230.25 per week in 2026/27), the excess is preserved as a “protected payment.” If it was below, you can build it up by adding more qualifying years.
SERPS and Contracting Out
Many employees were “contracted out” of SERPS through their workplace pension scheme. If you were contracted out, you and your employer paid lower NI contributions, and the difference was directed into your workplace pension instead of SERPS. During those years, you did not build up any SERPS entitlement.
This means your Additional State Pension may be lower than you expect if you were contracted out for a significant period. However, your workplace pension should compensate – it was supposed to provide at least equivalent benefits. For more details, see our guide on contracting out and the State Pension.
Inheriting SERPS From a Spouse
One important feature of SERPS is that it can be inherited by a surviving spouse or civil partner. When the scheme was introduced, up to 100% of a deceased person’s SERPS could be inherited. However, this was gradually reduced for those reaching State Pension age from 6 October 2002:
| Deceased Reached SPA | Maximum Inheritable |
|---|---|
| Before 6 October 2002 | 100% |
| 6 Oct 2002 – 5 Oct 2004 | 90% |
| 6 Oct 2004 – 5 Oct 2006 | 80% |
| 6 Oct 2006 – 5 Oct 2008 | 70% |
| 6 Oct 2008 – 5 Oct 2010 | 60% |
| On or after 6 October 2010 | 50% |
This inheritance right applies even if the surviving spouse is on the new State Pension system. The inherited SERPS amount is added to the survivor’s own pension. For more on this topic, see our guide on what happens when your spouse dies.
The State Second Pension (S2P): SERPS’ Successor
The State Second Pension replaced SERPS in April 2002 and ran until April 2016. While SERPS was purely earnings-related, S2P was designed to be more redistributive – it provided a flat-rate top-up for lower earners and also credited certain groups who were not working:
- Carers receiving Carer’s Allowance or caring for a child under 6
- People receiving certain disability benefits
- People on Jobseeker’s Allowance (for limited periods)
S2P entitlements are treated the same way as SERPS for the purposes of your current State Pension. They are included in your Additional State Pension figure and factored into your new State Pension starting amount.
How to Find Out Your SERPS/Additional State Pension Amount
There are several ways to discover how much Additional State Pension (SERPS and S2P combined) you have built up:
- State Pension forecast – Request a State Pension forecast online or by phone. This will show your total estimated pension including any Additional State Pension
- State Pension statement – Your statement on GOV.UK shows a breakdown including your COPE (Contracted Out Pension Equivalent) amount if applicable
- Contact the Future Pension Centre – Call 0800 731 0175 for a detailed breakdown
- Check your NI record – Your NI record shows which years you paid full NI (and therefore built up SERPS/S2P) and which years you were contracted out
Common Questions About SERPS
Can I Still Build Up SERPS?
No. SERPS ended in 2002 and its successor S2P ended in 2016. You can no longer build up any Additional State Pension. Under the new system, everyone builds up the same flat-rate new State Pension based on qualifying years.
Was I in SERPS Without Knowing?
Possibly. If you were employed and paid NI contributions between 1978 and 2016, and you were not contracted out through a workplace pension, you would have been building up SERPS (or later S2P) automatically through your NI contributions. Many people accrued these entitlements without being aware of it.
Is SERPS Affected by the Triple Lock?
Under the old system, Additional State Pension (SERPS/S2P) increases by CPI each year, not by the triple lock. The triple lock (the highest of earnings growth, CPI, or 2.5%) only applies to the basic State Pension and the new State Pension. Under the new system, your entire State Pension (including any Additional State Pension baked into your starting amount) benefits from the triple lock via the triple lock guarantee.