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State Earnings Related Pension Scheme |
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State Earnings Related Pension SchemeA government scheme introduced in April 1978 which enables employees (but not the self-employed) to top up the basic pension they receive on retirement with additional pension payments based on their earnings.Employees make payments to SERPS by way of Class 1 National Insurance (NI) contributions. They can 'contract out' of SERPS and pay Class 1 contributions via a rebate which may be invested in an occupational pension or a personal pension plan.SERPS was replaced in April 2002 with the 'State Second Pension' which is designed to give more to the lower paid and middle earners, carers and the long-term disabled with broken work records. Whereas with SERPS, the more you earn, the higher your pension, S2P operate a flat rate which means that high earners will be better off opting for private pension schemes.Similar MatchesNormalised earningsNormalised earningsSee 'adjusted earnings'. Lower earnings limitLower earnings limitThe level of income at which employees start to pay Class 1 National Insurance contributions. Earnings yieldEarnings yieldThe earnings of a company are its annual profits after deduction of tax, dividends to preference shareholders and bondholders. They are usually expressed on a per-share basis (e.g. 7p), and the earnings per share (EPS) figure is calculated by dividing total earnings by the average number of shares in issue for the relevant accounting period.e.g. earnings or £2m, with 10m shares in issue would give an EPS of 20pThe earnings yield is the EPS as a percentage of the current market price of the share. So if the EPS was 7p and the current market price is 116p, the earnings yield7 / 116 x 100 = 6.03%Earnings yield is not used as commonly as its reciprocal measure, the P/E ratio. On the same figures, the P/E would be:116 / 7 = 16.6 Upper earnings levelUpper earnings levelThe earnings level of an employee above which no further Class 1 National Insurance contributions are payable. Retained earningsRetained earningsThe proportion of a company's profits after tax which are not paid out as dividends but reinvested in the company. Further Suggestionsearnings per sharetaxable earnings Earnings retention ratio Earnings before interest and, taxes (EBIT) Fully diluted earnings per shares Earnings response coefficient Earnings before interest, taxes, and depreciation (EBITD) Accounting earnings net relevant earnings band earnings Earnings price ratio earnings cap Pretax earnings or profits Earnings yield Retained earnings Earnings earnings factor earnings Earnings before taxes (EBT) Earnings momentum Earnings before interest after taxes (EBIAT) Earnings before interest, taxes, depreciation, and amortization (EBITDA) Quality of earnings price earnings growth factor Primary earnings per (common) share |
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