Trustee news

How GMP equalisation could affect your pension

Some members of the Fund have a Guaranteed Minimum Pension (GMP) aspart of their Fund pension, which is calculated differently for males and females. This can cause males and females to receive different pension amounts. However, the law has changed which means we now need to recalculate the total benefit for some members so that it doesn’t matter if you’re male or female. This process is called ‘GMP equalisation’.

We have started work to check if and how members’ pensions are affected, and we expect the process to take 18 months to complete. We’ll write to you if your pension will change as a result of GMP equalisation – you don’t need to take any action now.

Are you affected?
Possibly, if you have a GMP from service between 17 May 1990 and 5 April 1997.

Did you know?
Males and females could both be affected by equalisation. But if you are, it is likely that any change will make only a small difference to your total pension.

What will happen next?
We will let you know if your pension will change. You do not need to take any action but please make sure your details on your pension record are up to date so we can contact you if we need to.

If your pension does change as a result of GMP equalisation, we’ll be in touch.

What if you have transferred out?
If you transferred out of the Fund and your transfer included a GMP pension from service on or after 17 May 1990, the calculation of your transfer may need to be reviewed. You may be entitled to a top-up payment to the scheme you transferred your benefits to. You can read more on GMP equalisation of transferred out pensions.

Questions?
We’re here to help. If you can’t find the answer to your question in the FAQs you can contact us.