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Pension credit |
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Pension creditA state benefit due to be introduced in 2003 which is intended to reward people who have saved for their retirement. Pensioners will receive a credit of 60p for each pound derived from a source other than the basic state pension, subject to an overall income limit of £135 per week for a single pensioner and £200 for pensioner couples.Similar MatchesDeferred state pensionDeferred state pensionWhen reaching retirement age, a person can elect to defer payment of his/her state pension. The result of this is to increase the value of the pension by one seventh of one percent for every week deferred. The maximum deferment period is five years and no further contributions are required. Unfunded pension planUnfunded pension planA pension plan which is funded by an employer from current income for the benefit of retirees. State Second PensionState Second PensionIn April 2002 the State Second Pension replaced the State Earnings Related Pension Scheme (SERPS) to pay a top-up pension based on employed people's earnings. Anyone earning over £3,500 but under £9,500 a year will be treated as if they earn £9,500 so their S2P could be as much as doubled. People earning between £9,500 and £21,600 will see a smaller increase. There will be no change for people earning over £21,600.Carers on less than £3,500 a year or who have no earnings will get credits for the S2P and will be treated as if they earn £9,500 a year. To qualify for credits they must get child benefit for a child under 6, be entitled to invalid care allowance or get home responsibility protection because they are caring for a sick or disabled person.Later on S2P will change and anyone earning over £9,500 will be better off opting out in favour of a private or occupational pension scheme. Simplified employee pension planSimplified employee pension planA pension plan, set up by an employee, in which both employer and employee contribute to an Individual Retirement Account (IRA). Underfunded pension planUnderfunded pension planA pension plan that has a negative surplus (i.e., liabilities exceed assets). Further SuggestionsOverfunded pension plancompany pension scheme occupational pension scheme National Insurance (NI) Basic Pension non contributory pension plan National Insurance Pension (State Pension) pension mortgage group personal pension stakeholder pension Salary Reduction Simplified Employee Pension Plan (SARSEP) Occupational Pensions Regulatory Authority Personal pension State Pension Pension Benefit Guaranty Corporation pension forecast State Earnings Related Pension Scheme pension plan Inland Revenue Pension Schemes Office Pensions Compensation Board appropriate personal pension plan executive pension plan Pension reversion guaranteed minimum pension personal pension scheme basic state pension |
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