GMP equalisation update

01 Jul 2023

In previous communications, we wrote to you about something called GMP equalisation.

It’s a complex subject, but in short it means that certain pensions (Guaranteed Minimum Pensions, or GMPs) built up between 17 May 1990 and 5 April 1997 need to be reviewed for any inequality between men and women. Where these GMPs are identified as being unequal, there is now a legal duty to adjust pensions to make them equal. The vast majority of pension schemes (including ours) are affected by this legal ruling, so we’re considering the implications and drawing up a plan to review and adjust pensions for affected members.

The calculations are complicated so the process will take some time, but we wanted to let you know that we’re working on it and will be in touch later this year with more information. We’re also taking the opportunity to simplify GMPs in general as part of this exercise. We’ll write to you to let you know if your pension is changing as a result (and by how much). We expect that some members may receive a small increase to their pension, but the changes are likely to be relatively minor. In all cases, pensions will not be reduced as a result of the changes.