From November, some pensioner members will receive a letter from us about Guaranteed Minimum Pensions (GMPs) and related benefit payments. 

GMPs can be a complex topic, so we wanted to give you a heads-up about the information you may receive and provide some background to help reassure you.

Only affected pensioners will receive a letter, so this information won’t be relevant to everyone. 

What is GMP?

GMP is the minimum amount that pension schemes like ours must provide for members who were ‘contracted out’ of the additional State Pension arrangements. 

GMPs built up between 1978 and 1997 were linked to the State Pension age which at that time was 60 for women and 65 for men. This means that men and women received slightly different overall benefits for this period. 

What this means for you

We have been working with our advisors to review the Fund’s GMP payments to ensure that men and women are being treated equally. This is called GMP equalisation. 

This follows a High Court ruling which requires pension schemes to address the differences in the GMP men and women earned between May 1990 and April 1997. After this date, people stopped earning GMPs due to changes to the State Pension.

Where you are affected by this review, you will receive a letter detailing any increase in your benefits including any back payment due to cover underpayments for previous years. For most members, we expect these payments to be small. 

Benefits will not be reduced as a result of the GMP equalisation exercise.

What happens next

The work so far has been long and complex, involving a detailed analysis of our member records. However, we have made good progress, and the calculations are currently being finalised. 

If you think you’re affected by GMP equalisation, please look out for a letter from us.

In the meantime, you do not need to do anything.