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.
