GMP was built up before 6 April 1997 by members of pension schemes which were ‘contracted out’ of the State Pension. Our Scheme was contracted out and so, for some members, a part of their pension entitlement in the Scheme will be a GMP.
GMPs were historically calculated differently for men and women (as required by law at the time), which created inherent inequalities. All pension schemes that were contracted out are now required to equalise benefits for the effect of unequal GMPs accrued after 17 May 1990.
The Trustee has started this exercise but this is a complex project and is likely to take a number of years to complete. Not all members will be affected. For the vast majority of those members who are affected, it is expected that the effect of equalisation will have a very small impact on their pension. If you are affected by GMP equalisation, you do not need to take any action. Our Scheme administrators will be in contact in due course if you are affected.
