GMP Equalisation

What is GMP?

Guaranteed Minimum Pension (GMP) is the minimum pension the Fund had to provide for members between 6th April 1978 and 5th April 1997, when it was contracted out of part of the State Pension. During this period, members paid lower National Insurance and built up GMP benefits in the Fund instead.

Because GMP was calculated differently for men and women, it can result in unequal pension amounts.

What is GMP equalisation?

Since May 1990, pensions must be equal for men and women. In 2018 a High Court ruling confirmed this also applies to GMPs. As a result, pension schemes have to correct any inequalities for GMP benefits built up between 17 May 1990 and 5 April 1997. This is a complex issue and many occupational pension schemes delayed dealing with it until detailed guidance was received from the government and the pensions industry.

How will this be addressed?

The Trustee has chosen GMP conversion, which replaces GMP with adjusted, non-GMP benefits in a one-off change. This approach simplifies administration while ensuring fairness. Due to the complex nature of the calculations involved and the number of members impacted the Trustee is dealing with this matter in phases. The Trustee is required to consult with members about this change and the initial consultation for members included in phase 1 of the exercise is underway.

Who is affected?

Only members who built up GMP (or notional GMP) between 17th May 1990 and 5th April 1997 are affected.  The Trustee has written to all members to confirm whether they are affected and which phase they are in. For these members, all GMP earned between 6th April 1978 and 5th April 1997 will also be converted.

Further updates will follow as the process progresses.

What does this mean for you?

If you are impacted

You may see an increase in your pension

You may receive a one-off back payment

Your pension will not be reduced

Generally, any increase in a member’s pension is expected to be small.

Where can I find further help?

A dedicated helpline and email support are available:

📞 0117 933 7298
📧 gmpequeries@impbrands.com