What benefits will I get from the State?
Basic State pension
As long as you pay enough National Insurance over your working life, you will receive your basic State pension on top of your Unilever pension, at State pension age.
State Second Pension (S2P)
S2P is the second level of pension paid by the State. (It used to be known as the State Earnings Related Pension Scheme, or SERPS – S2P, however, is being changed to a "flat-rate" benefit like the basic State pension.)
The Career average plan is "contracted out" of S2P. Under the "contracting out" system, pension schemes can "replace" some or all of S2P with their own benefits.
This is what happens:
- While you were a plan member, you did not build up all of your S2P.
- This means that you and Unilever made National Insurance savings.
- By law, Unilever must provide plan benefits above a certain level set by the Government to replace the S2P you would have built up.
State pension age
Whatever age you retire and draw your Unilever pension, you will start to receive any State benefits you are entitled to from State pension age. For many years, State pension age has been 65 for men and 60 for women, but pension laws passed in 1995, 2004 and 2007 mean that this will change significantly in the near future.
First, State pension age will become equal at 65 for men and women. This means that it will increase from 60 to 65 on a 'sliding scale' between 6 April 2010 and 6 April 2020 for women born between 6 April 1950 and 6 April 1955 – so, for example, a woman born in September 1952 will have a State pension age of 62½.
Then, State pension age will be increased to age 68 for everyone, this time in a series of stages between 6 April 2024 and 6 April 2046.
These are the main stages – please note the year-long 'gaps' between them:
- People born between 6 April 1960 and 6 April 1968 have a State pension age of 66.
- People born between 6 April 1969 and 6 April 1977 have a State pension age of 67.
- People born on 6 April 1978 or later have a State pension age of 68.
The ages are adjusted on a sliding scale month by month for people born during the two 'gap' years, that is April 1968 to April 1969 and April 1977 to April 1978.
Directgov
For more information about State benefits, please visit www.direct.gov.uk/en/Pensionsandretirementplanning/index.htm