Individual Protection
S2P
From 6 April 2002, SERPS (the State Earnings Related Pension). is being replaced by a new second State Pension, which the government has decided to call the State Second Pension (or S2P for short). For those who qualify for it (generally, employees earning at least £3900pa) S2P provides benefits at least as good as SERPS.
Just like SERPS, it is possible to opt out of S2P. Unlike SERPS, it is much more difficult to know whether or not you should opt out of S2P. Many people who have opted out of SERPS should opt into S2P, because the amounts the government will pay into private schemes is not changing, but the benefits from S2P, for the next few years, will be better than SERPS provided. Everyone who is currently contracted out of SERPS needs to review whether or not they should remain opted out of S2P.