Guaranteed Minimum pension (GMP)

Avon Pension Fund
Administered by Bath and North East Somerset Council

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Guaranteed Minimum Pension (GMP)

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 also 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 DWP is responsible for paying the annual increase on the part of your GMP which you built up prior to 6 April 1988.

The Avon Pension Fund will increase your post 5 April 1988 GMP pension up to a maximum of 3% per annum and the DWP will increase this part of your pension if the annual increase is greater than 3%, by the difference between the annual increase and 3%.

Eg: If the annual increase is 2.5% Avon Pension Fund will increase your post 5 April 1988 GMP pension but there will be no increase paid by the DWP. If the annual increase is 3.5% Avon Pension Fund will increase your post 5 April 1988 GMP pension by 3% and the DWP will pay you an increase of 0.5%.

NB. It is important to note that all of your pension from the Avon Pension Fund has been increased, however part has been paid by the DWP and the remainder by the Avon Pension Fund.

22/02/2011