Avon Pension Fund - Seastag Logo
Avon Pension Fund
Administered by Bath and North East Somerset Council
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Guaranteed Minimum pension (GMP)
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In 1978 the Government introduced the State Earnings Related Pension Scheme (SERPS). Since 1978 members of the Avon Pension Fund have been 'contracted out' of SERPS. This means that we have agreed to pay you a Guaranteed Minimum Pension at your state pension age which is broadly equivalent to the amount you would have received from SERPS.

You may have a GMP once you reach State Pension Age if you were:
 
  • A member of the Local Government Pension Scheme (LGPS) with pensionable service between 6 April 1978 and 5 April 1997.
  • A widow, widower, or a civil registered partner of a member who had pension service between 6 April 1978 and 5 April 1997.
  •  If your pensionable service spans April 1988 your GMP will be made up of Pre and Post 88 values.
How is GMP Calculated?
 

The GMP is calculated by the Department for Work and Pensions (DWP) and will be notified to you with your State Pension entitlement. The DWP will provide an annual update and inform Avon Pension Fund of the amount.
 
 
How is GMP increased when I reach State Retirement Age?
 
  • When you reach your state retirement age the State is responsible for paying the increase on the part of your GMP which you built up prior to 6 April 1988. For 2009 pensions increase is 5.0%.
  • The Avon Pension Fund will increase the post 6 April 1988 GMP pension to a maximum of 3% per annum. As the 2009 pension increase is more than 3% the State will increase this part of your pension by a further 2.0%. Therefore ensuring your overall pension is increased at 5.0%.

NB. It is important to note that all of your pension has been increased, however part has been paid by the State and the remainder by the Avon Pension Fund.
 
11/05/2009