State Pension built up before April 2016

State Pension built up before April 2016

Prior to April 2016, the State Pension was made up of 2 elements:

1. The basic State Pension; and
2. The additional State Pension. This was an earnings-related pension, first known as the State Earnings-Related Pension Scheme (or ‘SERPS’) and then later known as the State Second Pension 

As a member of the Plan you were ‘contracted out’ of the additional State Pension whilst in pensionable service before April 2016. This meant you and the Company paid a reduced rate of National Insurance and you will not have accrued any additional State Pension while you were an active member of the Plan. In return, the benefits you accrued in the Plan were designed to ensure you receive a minimum level of pension from the Plan.

If you were a member of the Plan before April 1997, being contracted out meant the pension you accrued before that date was subject to a Guaranteed Minimum Pension (GMP).

If you accrued GMP, and when you retire, we will convert any GMP you’ve built up into regular Plan pension. This converted element of your pension will be subject to increases in a similar way to GMP.