1. These figures are used in the calculation of the State Second Pension (S2P). From 6 April 2002, employees who are not contracted-out started to accrue rights to additional state pension under S2P instead of SERPS.

2. Unlike SERPS, which is calculated on band earnings between the Lower Earnings Limit (LEL) and the Upper Earnings Limit (UEL), S2P is based on three distinct 'sub-bands':

(a) The first band lies between the LEL and the 'low earnings threshold' (LET). The LET is approximately equal to half national average earnings.

(b) The second band is about twice as wide as the first, between the LET and the 'second earnings threshold', sometimes called the ‘upper earnings threshold’ and abbreviated to UET, which is defined as (3 x LET) - (2 x QEF) where QEF (the ‘qualifying earnings factor’) is the annual value of the LEL (ie 52 x weekly LEL), in the calculation of “2QEF” the amount produced by doubling QEF shall be rounded to the nearest whole £100 (taking any amount of £50 as nearest to the previous whole £100) [SSCBA 92 s.122 & Sch 4A Para 2(7); SI 2001/1354 Reg 1(d)].