Annex A: Note by the Department of Social Security - The Social Security (inherited SERPS) Regulations 2001
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Parliamentary Commissioner for Administration
State earnings-related pension scheme (SERPS) inheritance provisions: redress for maladministration
Annex A: Note by the Department of Social Security - The Social Security (inherited SERPS) Regulations 2001
The proposals
1. The Government proposes that from 6 October 2002, a new rule will apply on the amount of SERPS that a surviving spouse may 'inherit' on the death of their spouse.
2. The proposals are as follows:
- Nobody who is widowed before 6 October 2002 will be affected by the new rule. They will therefore inherit up to 100% of their deceased spouse's SERPS. [1]
- If someone is due to reach state pension age before 6 October 2002, when they die their surviving spouse can inherit up to 100% of their SERPS.
- If someone is due to reach state pension age after 5 October 2002 but before 6 October 2010, when they die their surviving spouse will inherit a maximum of between 90% and 60% of their SERPS. The exact amount will depend on when, in this period, the deceased person reached state pension age.
- If someone is due to reach state pension age on or after 6 October 2010, when they die, their surviving spouse will inherit up to 50% of their SERPS.
3. The table below sets out how the Government proposes the new scheme will operate:
| Max % SERPS entitlement for surviving spouse | Date when contributor reaches state pension age | Date of birth of contributor: | |
|---|---|---|---|
| Men | Women | ||
| 100% | 5.10.2002 or earlier | 5.10.37 or earlier | 5.10.42 or earlier |
| 90% | 6.10.2002—5.10.2004 | 6.10.1937—5.10.39 | 6.10.1942—5.10.44 |
| 80% | 6.10.2004—5.10.2006 | 6.10.1939—5.10.41 | 6.10.1944—5.10.46 |
| 70% | 6.10.2006—5.10.2008 | 6.10.1941—5.10.43 | 6.10.1946—5.10.48 |
| 60% | 6.10.2008—5.10.2010 | 6.10.1943—5.10.45 | 6.10.1948—5.07.50 |
| 50% | 6.10.2010 or later | 6.10.1945 or later | 6.07.1950 or later |
1 We talk in terms of 'up to X%' because when adding together a person's own SERPS entitlement and inherited amount of SERPS, the sum cannot be more than the prescribed maximum payable to a surviving spouse.
