Guaranteed Minimum Pension (GMP) equalisation update
As we have reported in previous editions of Focus, some members’ benefits will include a Guaranteed Minimum Pension (or GMP) which was accrued as a result of being contracted out of the State Earnings Related Pension Scheme (SERPS). GMPs are different for men and women and a court case has confirmed that schemes need to equalise benefits built up between 17 May 1990 and 5 April 1997 to take account of these differences.
We’re continuing to work on this with our advisers and hope that, in the near future, we’ll be able to tell you if there will be any adjustment to your benefits. However, this will only affect members with benefits which were built up during the relevant period. Please note, for the majority of affected members, any adjustment to their pension is likely to be very small.