The government gives
Your BA pension is only part of the income you will receive on retirement. The government pension is made up of:
- Basic State Pension
- State Second Pension (S2P) (previously known as the State Earnings Related Pension Scheme - SERPS).
The Basic State Pension is paid to all employees, provided you have paid sufficient National Insurance contributions over your working lifetime. It is generally paid monthly into your bank account beginning at State pension age.
Depending on your individual circumstances, you may also be entitled to the S2P.
You can get more information about the Basic State Pension and the S2P from the Department of Work and Pensions at www.direct.gov.uk.
The Final Salary Scheme is contracted out of the S2P. This means both you and BA pay a lower rate of National Insurance contributions and you do not build up any additional state pension. Instead, the Scheme must guarantee that your benefits are at least equal to what you would have received in the state scheme.
BAMPS is not contracted out of the S2P. You and BA pay a higher National Insurance contribution and you build up the additional state pension alongside your individual BAMPS retirement account.
Reduced rate National Insurance contributions
If you are a married woman or a widow paying reduced rate National Insurance contributions, you will not be entitled to the Basic State Pension in your own right.