Confusion over Serps state pension

The government is reissuing pension projection letters, after confusion over its calculations.

The Department for Work and Pensions is writing to 500,000 people to clarify how much they can expect to get from the state earnings-related-pension scheme (Serps).

It said re-issuing the letter was aimed at clarifying the change in rules concerning inherited Serps, which is being phased in over the next few years.

In the letter, people are given an estimate of what their Serps pension would be, and how much could be passed onto a surviving spouse.

The DWP said the projection figure in the letter accounts for both Serps and contracted-out pension contributions, and it was sending this out to make it "crystal clear" to people.