Additional State Pension: SERPS and S2P Explained for Anyone Still Getting the Old State Pension
If you reached State Pension age before April 2016, you may have Additional State Pension (SERPS or S2P) on top of the basic pension. How it's calculated and uprated in 2026/27.
Quick answer
Additional State Pension is the extra layer some pensioners built up on top of the flat-rate Basic State Pension, through two successive schemes: the State Earnings-Related Pension Scheme (SERPS) from 1978 to 2002, and the State Second Pension (S2P) from 2002 until the system changed in April 2016. It only ever applied to employees, was linked to earnings and National Insurance paid, and continues to sit alongside the Basic State Pension for anyone who reached State Pension age before the new system began.
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State Pension forecast calculatorWhy it only applied to employees
SERPS and S2P were built around Class 1 National Insurance contributions, paid by employees and their employers. Self-employed people, who paid Class 2 (and Class 4 on profits) instead, never built up an entitlement to Additional State Pension under either scheme β a long-standing structural gap that meant many self-employed pensioners retiring under the old system received noticeably lower total State Pension income than employees with similar career-length earnings.
uk-additional-state-pension-guide-2026The new State Pension changed the structure, not the past
For anyone reaching State Pension age from 6 April 2016 onwards, the two-tier Basic State Pension plus Additional State Pension system was replaced by a single flat-rate new State Pension. Past Additional State Pension already accrued wasn't lost β it was factored into a "starting amount" calculation at the point of transition, comparing what someone would have received under the old rules against a flat calculation under the new rules, and using whichever figure was higher as the starting point (subject to further qualifying years). Anyone who reached State Pension age before April 2016, however, continues to receive their Additional State Pension as a genuinely separate, ongoing element alongside the Basic State Pension.
Contracting out: trading Additional State Pension for a private pension
For much of the scheme's history, employees (often through their employer's pension scheme) could "contract out" of SERPS/S2P, paying reduced National Insurance in exchange for having that portion of their pension savings redirected into a private or workplace pension instead. This reduces the Additional State Pension figure on a State Pension forecast, but it should be matched by a corresponding private pension pot built up during the contracted-out years β checking that this private pension was actually maintained and is being drawn is an important cross-check for anyone with a contracted-out history.
Different uprating rules matter for the total
Because the Basic State Pension (and now the new State Pension) is protected by the triple lock β increasing by whichever is highest of average earnings growth, CPI inflation, or 2.5% β while Additional State Pension is uprated by CPI inflation alone, the two elements of an older pensioner's total State Pension income can grow by different percentages in the same year, meaning the combined increase shown on an annual uprating letter isn't a single flat percentage.
Bottom line
Anyone who reached State Pension age before April 2016 and holds both Basic and Additional State Pension should treat the two elements as genuinely separate for uprating purposes, and check whether any contracted-out years have a matching private pension that's actually being tracked and drawn.
Sources
- gov.uk: The basic State Pension
- gov.uk: Additional State Pension
- gov.uk: Contracted out of the Additional State Pension
Frequently asked questions
What is Additional State Pension?
Additional State Pension is an extra amount that could be built up on top of the Basic State Pension by employees (not the self-employed) between 1978 and 2016, through two successive schemes: the State Earnings-Related Pension Scheme (SERPS) until 2002, and the State Second Pension (S2P) from 2002 to 2016.
Do people who reach State Pension age after April 2016 get Additional State Pension?
No β the new State Pension, which applies to people reaching State Pension age from 6 April 2016, replaced the old two-tier Basic State Pension plus Additional State Pension structure with a single flat-rate amount, though past Additional State Pension already earned was 'converted' into a starting amount under transitional rules.
Was Additional State Pension available to the self-employed?
No β SERPS and S2P were only available to employees paying standard Class 1 National Insurance; self-employed people paying Class 2 (or later Class 4) contributions never built up Additional State Pension, which is one reason self-employed pensioners under the old system often received lower total State Pension amounts.
Could someone opt out of Additional State Pension?
Yes β through 'contracting out', where an employee (and often their employer) paid lower National Insurance in exchange for their pension savings being redirected into a private or workplace pension instead of building up SERPS/S2P; this reduces the Additional State Pension amount but should mean an equivalent private pension pot exists instead.
How is Additional State Pension uprated each year?
Additional State Pension is uprated annually in line with CPI inflation, unlike the Basic State Pension and new State Pension, which benefit from the triple lock β meaning the two elements of an older pensioner's total State Pension can increase by different percentages in the same year.
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