GMP conversion - Pensioners and Dependants
New pension payments started in March 2024 for members included in the first phase of this exercise and in March 2025 for the second phase. Please refer to your individual communication for additional detail on how you are impacted.
The GMP conversion consultation period for individuals included within Phase 3 of the exercise will run from 2 June 2025 to 31 July 2025.
As part of each phase of the project, we have written out to several impacted pensioner and dependant members about a pension review exercise known as ‘GMP equalisation’. This exercise is not unique to our Plan and the majority of UK pension schemes have also considered how this impacts them.
As Trustee, we are legally required to address a historical inequality in the Plan. In practice, this means adjusting pensions to make up for unequal Guaranteed Minimum Pension (GMP).
The key point is that you don't need to worry - there won't be any reduction to anyone's Plan pension. Some members may get a small increase to their pension but other members will not see any change.
GMP conversion - Deferred Members
The consultation period on our GMP equalisation proposal for deferred members is now closed, and your individual statement will confirm the changes being made to your pension.
As noted above, as Trustee of the Plan, we are legally obliged to address an historical inequality relating to some GMP benefits in the Plan, following the outcome of a High Court legal case. The outcome of the court case affects members of defined benefit pension schemes across the UK, including members of the Plan, and confirms that trustees should adjust other pension scheme benefits because of the inequality caused by the legislation. The way that we proposed to address the historical inequality meant that we also had the opportunity to simplify members’ benefits.
Compared to your current Plan pension, the overall expected value of your Plan pension will not be reduced over your lifetime.