As mentioned in our Fund update of July 2024, a major project for almost every scheme in the UK is to carry out Guaranteed Minimum Pension (or “GMP” for short) equalisation – further information on this is set out below. This project has been under way for some time, and we will be in contact with any affected members in the coming months.
We are also contacting former members who transferred out of the Fund who are affected. Our actuarial advisers, WTW, are providing support with this project. If you receive a letter confirming that you are affected, please follow the instructions in the letter.
Our Fund does have GMPs, but not all members’ benefits contain GMPs, so if you don’t receive a letter, this may be because your benefits from the Fund do not include GMPs.
GMP equalisation
For benefits built up during the period between 6 April 1978 and 5 April 1997, part of the Fund pension is usually a GMP. A GMP is the minimum pension that the Fund had to provide for members who were contracted out of the State Earnings-Related Pension Scheme (or “SERPS” for short) during this time.
GMP has special rules governing it, which are different for men and women. Following a High Court judgment in October 2018, there is now clarity on how schemes can put this right. ‘GMP equalisation’ is the name given to the process of correcting benefits so that men and women are treated the same where necessary.