Additional State Pension definition

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Pensions—the state pension

This Practice Note sets out the different types of state pension, the qualifying criteria, implications within divorce/dissolution, nullity or separation proceedings, obtaining information and disclosure, and orders that may be made by the court in family proceedings. It reflects the reform of state pensions and provides guidance on the consequences in a family law context.This Practice Note provides guidance on:•the old state pension scheme for those reaching state pension age prior to 6 April 2016, and•the new state pension scheme for those reaching state pension age on or after 6 April 2016The state pension may be overlooked on divorce, dissolution, nullity or (judicial) separation, because it may be perceived as worth little or because its structure and/or the possibilities available to meet the parties’ financial needs are not understood. Full information regarding state pension rights should be obtained during the financial disclosure process using Form BR19 (application for a state pension forecast) and Form BR20 (which will provide a cash equivalent (CE) valuation of any shareable rights) to ascertain the...

What does ‘contracting-out’ mean for pension lawyers?

Interaction with the additional State pensionBefore 6 April 2016, there were two levels of State pension provision:•the basic State pension—this was a flat rate broadly based on the amount of National Insurance Contributions (NICs) a person paid or was treated as having paid, and•the additional State pension known as the State Second Pension (S2P)—as its name indicated, it was a pension paid on top of the basic State pension. It was related to an individual's earnings. Note that prior to April 2002, the additional State pension was known as the State Earnings Related Pension Scheme (SERPS)Before 6 April 2016, pension schemes could either 'contract in' or 'contract out' of the additional State pension. If a pension scheme was 'contracted-in' to the additional State pension, members would receive the additional State Pension on top of their basic State pension (depending on their earnings).If a pension scheme was 'contracted-out' of the additional State pension, scheme members would not receive the additional State pension. In exchange:•the scheme had to provide the member with...

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Letter to the Pension Service enclosing either or both Form BR19 and Form BR20 requesting a state pension statement or valuation

Letter to the Pension Service enclosing either or both Form BR19 and Form BR20 requesting a state pension statement or valuation To: Newcastle Pension Centre, Futures Group The Pension Service 9 Mail Handling Site A Wolverhampton WV98 1LU UK Date: [insert date] Dear Pension Service Our client: [insert client’s name] Date of birth: [insert dd/mm/yyyy] National Insurance number: [insert NI number] We act for [insert client’s name] in connection with divorce and financial proceedings. We enclose: • a letter of authority signed by our client