Understanding Guaranteed Minimum Pension (GMP)

Your 1967 Section pension is made up of different parts, which is based on when you built up your pension, or when the member built up their pension, if you receive a dependant’s pension.

The Guaranteed Minimum Pension (GMP) is one part. GMP was earned between 6 April 1978 and 5 April 1997, so if you, or the member, were building up pension in the 1967 Section in this time, some of it will be GMP.

State Pensions used to be calculated differently for men and women, and they were paid from different ages – 60 for women and 65 for men. GMP was meant to replace part of the State Pension and reflected these differences from the start.

The pension scheme has been reviewing the GMP position to make sure that men and women receive equal benefits from the Scheme – this is called GMP Equalisation.

The Trustee has reviewed benefits that members built up between 17 May 1990 and 5 April 1997. These have now been corrected to make sure that men and women are treated the same.

This review is referred to as the Equalisation of Guaranteed Minimum Pension (GMP).

We have recently written to some members and dependants who are currently receiving a pension to let them know that they will receive an increase to their pension, or a one-off lump sum payment.

These changes do not affect everyone. If you are entitled to an increase or a one-off payment, this will be adjusted in your January pension payment and if the amount is more than £5.00, you will also receive a letter confirming the details.

For members who will receive their pension in the future, any applicable changes will be applied before the pension is paid.

If you’d like to find out more about GMP you can read our ‘Understanding GMP’ FAQ leaflet.