GMP equalisation explained

GMP is a minimum level of pension earned between April 1978 and April 1997 in a pension scheme (like the Plan) that was contracted out of the additional state pension.

Until recently the State Pension age was 65 for men and 60 for women, and often retirement from workplace pensions was taken at the same time. This meant that men and women built up different amounts in their GMP pot causing inequalities between the amounts paid to men and women.

The courts have found it is unfair to pay people different amounts of pension based on different retirement ages, so your pension scheme must equalise pension amounts in respect of GMP for everyone.

As a result, there will be some people who will be owed some additional money and some who have been paid too much. But don’t worry, if you were overpaid you will not be required to pay any money back.

In reality, if you have been underpaid, the amount of additional money you’ll receive is likely to be relatively small.

The Trustee is busy working out the calculations for equalising the GMP, and this is a very complex process, so don’t be concerned if you haven’t heard from us.

You don’t need to do anything – it’s all in hand. You should also be aware that there is no requirement for the Plan to notify you about how this might affect you, but you will be notified in due course.

We have created a video to help you understand further which you can view by visiting www.oneemerson.co.uk/resources/videos