This is the second tier to the State provision of retirement benefits. It is available to employees who pay National Insurance contributions. If a final salary scheme is 'contracted out' of SERPS, this means that the scheme guarantees to ensure that the benefits members will receive, at normal retirement age, will equal or exceed what they would have had from the State. The advantage, from the members' point of view, is that they pay a reduced NI contribution to the State. SERPS is due to be replaced shortly by the State Second Pension (S2P).