What is the guaranteed minimum pension?
Guaranteed minimum pension is a measure provided to members of the pension system related to earnings (SERP) in the UK in the UK, which were banned on their pension plans between 1978 and 1997. This is designed to prevent people from being insufficiently paid for their pensions. Another tax rate was charged in exchange. However, it was necessary to provide them with a guaranteed minimum pension to log out of SERP and closure of employees. This ensured that employees were not subordinate by being banned and secured by income of the equivalent income that people earned within the SERP.Ween 1978 and 1997. People with payments outside this period are entitled to guarantee minimum pension covering the years working in this period. Pension schemes that have closed their members are obliged to provide a guaranteed minimumThe pension and offer information to its members.
pensions are designed to support people in old age, although the funds provided are usually not enough to live fully independently. Members of pension programs can also set funds for savings and investment accounts to replenish retirement income. The calculation of a guaranteed minimum pension can be quite complicated, because the pensions are based on an increase in living costs and other factors and it may be necessary to use more calculations to determine the amount of money to which someone is entitled.
Serps himself was replaced in 2002 with another plan more sophisticated design that included measures to protect people with low income; These individuals pay less to pension plans and are therefore entitled to less. This can lead to such a low retirement that benefits are not enough to live, thereby getting low -income workers after retirement after retirementto poverty and cannot afford the cost of living.
People entitled to a guaranteed minimum pension can get more information from their pension plans about how pension payments are calculated and how much money they are entitled during retirement. This information can be used in retirement planning.