Inheritance of State Earnings Related Pension (SERPS)In 1986, the law was changed to reduce the amount of State Earnings Related Pension (SERPS) that people widowed after 5 April 2000 could inherit from their husbands (or wives).
However, it became clear that for many years after 1986, some people were given incorrect or misleading information about the change, and so the Government recently announced new plans for how much SERPS can be passed on to a widow or widower, when the person who has contributed to the scheme dies.
In November 2000, after a period of consultation, the Secretary of State announced new plans.
From 6 October 2010, widows and widowers will be able to inherit up to half of their husbands or wife's SERPS.
Under these new plans there will be no change to the current arrangements for people who are:
- already widowed now and are receiving a SERPS pension;
- not widows or widowers now, but whose husbands or wives die between now and 5 October 2002.
Parliament is being asked to approve plans, which would mean there would also be no change for people who are widowed on or after 6 October 2002, but whose late husband or wife reached state pension age on or before 5 October 2002.
If you fall into one of the groups above, you do not need to do anything now or make any special claim in future.
For those who will not reach the state pension age until between 6 October 2002 and 5 October 2010, the new inheritance rule for SERPS will be phased in.
The table below illustrates how the Inherited SERPS rules will be phased in for people reaching state pension age between 6 October 2002 and 5 October 2010
Max % SERPS
entitlement
for surviving
spouse |
Date when contributor
reaches state
pension age |
Date of birth of
contributor:
Men |
Date of birth of
contributor:
Women |
| Up to 100% |
5.10.2002 or earlier |
5.10.37 or earlier |
5.10.42 or earlier |
| Up to 90% |
6.10.2002 - 5.10.04 |
6.10.1937 – 5.10.39 |
6.10.1942 – 5.10.44 |
| Up to 80% |
6.10.2004 - 5.10.06 |
6.10.1939 – 5.10.41 |
6.10.1944 – 5.10.46 |
| Up to 70% |
6.10.2006 - 5.10.08 |
6.10.1941 – 5.10.43 |
6.10.1946 – 5.10.48 |
| Up to 60% |
6.10.2008 - 5.10.10 |
6.10.1943 – 5.10.45 |
6.10.1948 – 5.07.50 |
| Up to 50% |
6.10.2010 or later |
6.10.1945 or later |
6.07.1950 or later |
How much SERPS a widow or widower can inherit from their husband or wife will depend on how much SERPS they get already. No individual can have more than the prescribed maximum amount of SERPS, which will include their own SERPS and any inherited SERPS. The prescribed maximum Inherited SERPS is currently set at £138.00 per week.
Mrs Smith has £60 SERPS (based on her own National Insurance contributions). Her husband, before his death, was receiving £90 SERPS. Mr and Mrs Smith’s combined SERPS is more than the current maximum SERPS limit for each individual. Therefore, Mrs Smith would be able to inherit £78.00 of her husband’s SERPS.
We recognise that there are a small number of people who have acted on wrong advice from this Department. For this group, the usual departmental rules in relation to maladministration will apply.
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