state pension

As well as your pension from the Fund, you may also be entitled to receive a State Pension. The State Pension changed in 2016, and there is now the ‘old’ State Pension and the ‘new’ State Pension.

the old state pension

This is payable to anyone who reached their State Pension Age on or before 5 April 2016:

The old State Pension was made up of two elements:

  • The Basic State Pension

And

  • The State Earnings Related Pension Scheme (SERPS) or State Second Pension (S2P)

The Fund was ‘contracted out’ of SERPS/S2P, which meant that lower National Insurance contributions (NICs) may have been paid by you and your employer while you were a member.

‘Contracting out’ is a fairly complicated subject, but, broadly speaking, because you may have paid lower NICs, your State Pension for the time you were a member of the Fund is lower, and the Fund is responsible for paying a broadly equivalent pension amount. if you were contracted out before 6 April 1997. This is known as the Guaranteed Minimum Pension, or GMP.

You can read more about the State Pension at www.gov.uk/state-pension

The new State Pension

Payable to you if you reach your State Pension Age on or after 6 April 2016;

If you reach your State Pension Age on or after 6 April 2016, your State Pension will be based on the new, single-tier system. To qualify for the new State Pension, you must have at least 10 years’ of National Insurance contributions.

You can read more about the new State Pension at www.gov.uk/new-state-pension

You can also find out what your expected State Pension Age is at www.gov.uk/state-pension-age

Some people may be entitled to still receive their State Pension on the old basis (Basic State Pension plus Additional State Pension) if it is higher. More details on the calculation method can be found here