Getting ready for
Guaranteed Minimum
Pension Equalisation - GMPe

01 November 2023

We will start to contact members of the Scheme about Guaranteed Minimum Pension equalisation (GMPe) soon

Over the last year we have contacted some members about the Guaranteed Minimum Pension (GMP) part of their pension. These programmes, known as GMP correction (GMPc) and GMP rectification (GMPr) are nearly complete.

The next programme is GMPe

Previously, the State Pension Age (SPA) for men and women was different. State Pensions were paid to men at age 65 and to women at age 60. By November 2018, both men and women had a SPA of 65.

Also in 2018, a High Court judgment ruled that pension schemes were required to adjust for the impact of unequal GMP for men and women from 17 May 1990 to 5 April 1997.

What does this mean?

Once pension benefits are correct for members under GMPc and GMPr we can accurately review benefits to see if they are equal.

If you are an affected member, we will calculate the amount of pension you built up between 17 May 1990 and 5 April 1997. Then we will calculate it again over the same period, as if you were a member of the opposite sex. Everything else about the calculation will stay the same: for example, your age, salary, and the date you retired or will retire. Your pension may change if found to be different if you were a member of the opposite sex.

We will also work out if you received less pension in past years because of your sex and if this is the case a one-off additional payment (which includes interest) will be paid.

For any members who have not taken their pension benefits yet, we will undertake reviews under all three GMP programmes (GMPc, GMPr, and GMPe) so that when you apply to take your pension, it will be correct from the day you start to receive it.

We will then continue to monitor and review your pension to make sure that we are treating benefits equally for men and women.

What happens next?

We have already identified who is affected by GMPe. If you are already taking your pension benefits from the Scheme, we will send you a letter to let you know if you are affected. This letter will explain what GMPe is and what we are doing to correct your benefits. You will then receive an ‘impact statement’ in 2024 which will outline the changes to your benefits in more detail.

If you are not yet taking your pension benefits from the Scheme but have built up benefits during the period from 17 May 1990 to 5 April 1997, we will let you we know more about GMPe in your 2024 Current Value Statement.

Addressing your concerns

We understand that any changes to your pension may be concerning, especially during these cost-of-living challenges, however it might help to know that:

  • GMP is usually a small part of a pension. If affected you might see little difference to your overall pension whether it goes up or down.
  • No members will be required to pay any money back to the Scheme relating to past over payments.

If you are worried about your personal financial position and the cost of living, we have detailed some helpful contact points. You can find this in our Contact us page of this website.

Stay informed

Over the course of the programme, we will add regular news articles to this website as well as update our frequently asked questions (FAQs) section. Make sure that you come back regularly to stay informed.