Guaranteed Minimum Pension (GMP)
You might have already heard about GMP mentioned in relation to workplace pension schemes, including the T-Mobile International UK Pension Scheme (the Scheme). GMP was built up before 6 April 1997 by members of pension schemes who were contracted out of the State Earnings-Related Pension Scheme (SERPS).
GMP was built up under legislation that treated men and women differently in some circumstances. Following a High Court judgement, pension schemes are required to equalise member benefits to ensure they’re calculated fairly and in line with legal requirements. This process is known as GMP equalisation.
The Scheme plans to carry out a GMP equalisation exercise next year. Only a limited number of members are expected to be affected and any adjustments required are likely to be small.
Affected members will be contacted directly once the review has been completed and any benefit changes have been calculated. For the majority of members, GMP equalisation is not expected to have a significant impact on members’ retirement benefits.