Goodyear Dunlop Tyres UK Limited Pension Plan

Questions & Answers

Below provides information on common questions and answers as part of the various Plan GMP projects.

Pensions 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.

GMP conversion - Deferred Members

Changes took effect from April 2025. Please refer to your individual statement to confirm the changes being made to your pension.

GMP Proposal – Deferred members only
  • 1.Why might my Pension plan need to change?
    • Your pension might need to change because we need to address an historical inequality relating to some Guaranteed Minimum Pension (GMP) benefits in the Plan. The inequality arises because of the different way that GMP benefits are calculated and paid between men and women.

      The requirement to address this inequality follows the outcome of a High Court legal case which affects members of defined benefit pension schemes across the UK, including the Plan.

      Whilst your pension may change slightly, the changes proposed would not result in any reduction to your expected pension at your Plan Normal Retirement Age, or the expected overall value of your pension in the future.
  • 2. What is Guaranteed Minimum Pension?
    • Your Plan pension is made up of different parts, based on when you earned your pension. The Guaranteed Minimum Pension, or GMP, is one part.

      GMP is linked to when there were two parts to the State Pension arrangement – the Basic State Pension and the State Earnings-Related Pension Scheme (SERPS, which later became the State Second Pension).

      Workplace pension schemes had the option to ‘contract out’ of the SERPS. This resulted in National Insurance savings for the employer and its members, and most schemes like ours took advantage of this option.
      In exchange, the Plan had to promise to pay members at least as much pension as they would have received from SERPS.

      This is the part of your Plan pension that is known as GMP.

      GMP was earned between 6 April 1978 and 5 April 1997, so if you were building up benefits in the Plan during this time, some of your Plan pension is GMP.  

      The amount of GMP, and the way it must be increased before you retire, and once in payment, is set by legislation.

      GMPs are different for most men and women because the State Pension Age used to be different for men and women. As a result, men and women built up GMPs at different rates and GMPs were payable at different dates. Under legislation, GMP is payable at age 60 for women and age 65 for men. This is not linked to your Normal Retirement Age under the Plan or your State Pension Age, both of which may be different. This is what led to the historical inequality which a High Court case has said pension schemes must now address.
  • 3. What is the legal ruling?
    • Pension benefits have generally had to be equal for men and women since 17 May 1990. However, GMPs remain unequal because they have to be calculated and paid in line with legislation which has not changed.

      The issue of GMPs within pension benefits has only been addressed more recently, following a separate High Court ruling. The case related to three members of the Lloyds Banking Group’s pension schemes who claimed discrimination on the basis that their GMPs were not equal to the GMPs of members of the opposite sex. 

      The High Court ruled in the members’ favour in October 2018 and held that trustees of pension schemes with GMP are under a legal duty to adjust benefits to address the historical inequality between men and women arising from unequal GMPs.

      The result of this ruling is that all affected pension schemes are legally required to address this inequality. 

      Pensions earned between 1990 and 1997 must be equalised for the effect of unequal GMPs. This is commonly known in the pensions industry as ‘GMP equalisation’.  GMPs earned before 1990 are not covered by the court ruling and do not need to be equalised. 

      You may be affected by GMP equalisation even if you don’t have any GMP earned in this period. This is because we are proposing to use this opportunity to simplify Plan benefits more widely and to replace all GMPs in the Plan with other, equivalent benefits. This is known as ‘GMP conversion’.

      Our proposed change will enable the Plan to resolve the issue of unequal GMPs earned after 16 May 1990 – now a legal requirement. It also allows us to simplify the structure of your benefits by converting your GMPs into a different form of pension (more details are set out in this document).
  • 4. What needs to happen to address any inequality?
    • a. GMP equalisation

      There are different ways of equalising pensions for the impact of unequal GMPs.

      Having considered all available options carefully, and with expert guidance from our advisers, we propose to carry out a one-off calculation to determine, when your pension is taken, whether the value of the benefits would have been greater if you had been the opposite sex for the period between 17 May 1990 and 5 April 1997.

      If it would have been greater at your Normal Retirement Age, we will apply an uplift to your pension. 

      Note: not everyone will be affected, so only some members will receive an uplift to their expected pension at their Normal Retirement Age. We expect any such uplift to be quite small.

      No member will see a reduction to their expected pension at their Normal Retirement Age, or the expected overall value of their pension in the future.

      b. GMP conversion

      To fulfil the GMP equalisation requirement for deferred benefits and to simplify pensions going forwards, we are proposing to convert all members’ GMP into a different form of pension.
      In addition, converting GMP into a different form of pension will:
      • Remove gender-based inconsistencies arising from GMP between men and women (for pension earned from 1990 onwards) – providing each member with the more valuable of the two.
      • Simplify your future Plan pension and the future administration of the Plan, as they will no longer be tied to complex GMP legislation.
      • Potentially provide greater flexibility in how you can take your Plan benefits at retirement, because the current restrictions around how and when you can take GMP benefits would no longer be relevant.
      GMP conversion laws require that if a member is having their GMP converted, all their GMP (including any GMPs built up before 1990 that do not need to be equalised) must be converted.

      We intend to convert GMPs for all members who left the Plan before 1990 and so are not subject to equalisation. If we did not do this, it would create a significant administrative burden for the Plan.

      Note: only GMPs earned between 1990 and 1997 need to be equalised. If you did not earn GMP within this period, you will not be affected by GMP equalisation. However, your Plan pension will still be simplified under our proposal for GMP conversion, on which we are required to consult.

      Every deferred member with a GMP (whether or not their pension has been changed as a result of GMP equalisation) will have their GMP converted into a different form of pension.

      If we did not address the GMP equalisation as a one-off calculation for all members with a GMP, the already complex administration of the Plan would become even more complicated.
  • 5. What is our proposed approach for GMP conversion?
    • We propose to make as small a change to benefits as possible.
      For all pensions earned between 6 April 1978 and 5 April 1997, we would remove any adjustments relating to GMP which may otherwise have occurred at age 60 for women or 65 for men (impacting only those members currently below age 65).

      Our proposed approach involves converting:

      • The way your GMP increases between when you left the Plan and when you retire, and
      • The way your GMP increases in payment before your GMP age (age 65 for men and age 60 for women).

      Your pension built up between 6 April 1978 and 5 April 1997 is currently made up of a combination of pension elements. Your letter explains how elements of your individual pension currently increase in the Plan before and after retirement, and how we propose these are changed following GMP conversion.
  • 6. Why are you proposing to convert GMPs?
    • GMP equalisation is a complex and costly process, no matter which method is adopted. We decided on our proposed GMP conversion approach after much consideration and input from our advisers.

      In addition, it has the potential to provide greater flexibility in how you can take your Plan benefits at retirement, by removing restrictions around how and when you can take GMP benefits. For example, this could lead to some members being able to take a higher tax-free lump sum when their pension starts.

      The factors that influenced our decision include:
      • the historical complexity in the Plan,
      • the opportunity to simplify the existing benefit structures, and
      • the reduced tax implications of converting GMPs following the abolition of the Lifetime Allowance (LTA) Charge from 6 April 2023 and the Lifetime Allowance from 6 April 2024
      Simplifying Plan benefits may reduce the risk of errors and improve the financial security of your Plan benefits, based on our current experience of the additional complexities and costs associated with administering GMPs.

      We are satisfied that our proposal is in the interest of the Plan and its members.
  • 7. Can the Trustee make the proposed change?
    • Yes, pensions law does allow the Trustee to change the Plan’s benefits in this way, after taking account of any feedback received during consultation. However, certain steps need to be taken first, given that the change we are proposing affects benefits that have already been built up.

      The Trustee have taken legal and actuarial advice and are following guidance from the Department of Work and Pensions.

      The Trustee has consulted with all affected members of the Plan.

      The proposed change is also subject by law to the consent of the Plan’s sponsoring employer. The Trustee has discussed the proposals with the Company (Goodyear Tyres UK Limited), which has confirmed its agreement to the proposed change.
  • 8. Could there be any tax implications if the proposal goes ahead?
    • The Trustee is required to carry out GMP equalisation for the Plan. If your pension is increased following GMP equalisation when you decide to start receiving it, we will deduct income tax on the additional amount in the normal way. As a result, there may be tax implications if GMP conversion leads to a greater increase in the starting annual amount of your Plan pension.

      Our proposal for GMP conversion has been designed to minimise any negative tax implications. Our proposed method of GMP conversion is not likely to trigger any tax charges above those that would have otherwise been payable on your pension at retirement. However, there may be tax implications if:

      • you are using all your Annual Allowance, or
      • you have applied for Fixed or Enhanced Lifetime Allowance protection after 15 March 2023

      Annual Allowance (AA)

      The Annual Allowance is the annual limit on the amount of contributions paid to, or benefit built up, in all private pension schemes before the member has to pay tax. You can read more about this on the Government website at www.gov.uk/tax-on-your-private-pension/annual-allowance.

      You might be making pension savings in another pension arrangement and using up some of your Annual Allowance each year. But because you stopped building up benefits in the Plan some time ago, your Plan pension has not used up any of your Annual Allowance in recent years.

      If GMP is converted to a new form of pension before retirement, because of the complexity of HMRC’s tax rules, members may use up some of their Annual Allowance in the tax year of conversion. In the majority of cases, we expect members to use up little or none of their Annual Allowance following the proposed changes in the tax year of conversion, which is confirmed within the benefit statement provided in October 2024.

      If you believe you are at or near the Annual Allowance  limit, please get in touch using the details on the contacts tab.

      Lifetime Allowance (LTA)

      The Lifetime Allowance is a limit on the amount of pension benefit that an individual can receive from all pension schemes (whether lump sums or retirement income) without triggering an extra tax charge known as the Lifetime Allowance Charge. You can read more about this at www.gov.uk/tax-on-your-private-pension/lifetime-allowance.

      Our proposal to convert GMP may only impact your Lifetime Allowance if you applied for Fixed or Enhanced protection after 15 March 2023 (or plan to do so). If you have applied for such protection then you will also have a higher protected Pension Commencement Lump Sum. Our proposal to convert GMP may cause you to lose such protection - including the higher protected Pension Commencement Lump Sum.

      If you have applied for Fixed or Enhanced Protection after 15 March 2023, or plan to do so in future, please get in touch using the details on the contacts tab so we can review and consider your circumstances in relation to this.
  • 9. My friend has a Plan pension - why haven’t they received this letter?
    • If your friend joined the Plan after 5 April 1997, they will not have a GMP and therefore this proposal does not affect them. So as not to confuse them, as it has no impact on  their pension, we decided not to send them this letter.
GMP Proposal - Pensioners and Dependants
  • 1. Why might my Plan pension need to change?
    • Your Plan pension might need to change because we need to address a historical inequality relating to certain historical GMP benefits following the outcome of a recent High Court case. See question 2. Your Plan pension will not go down as a result of this change.
  • 2. What is Guaranteed Minimum Pension?

    • Your total pension is made up of different parts based on when you built up your pension. Guaranteed Minimum Pension, or GMP, is one part. GMP is linked to when there were two parts to the State Pension arrangement - the Basic State Pension and the State Earnings Related Pension Scheme (SERPS) (replaced by the State Second Pension from 2002 until 2016). Workplace pension schemes had the option to 'contract out' of the SERPS. This resulted in National Insurance savings for the employer and Plan members, and most schemes like ours took advantage of this option.

      In exchange, the Plan had to promise to pay members at least as much pension as they would have received from the SERPS. This is the part of your Plan pension that is known as GMP. GMP was earned between 6 April 1978 and 5 April 1997, so if you were building up benefits in the Plan during this time, some of your Plan pension may be GMP. The amount of GMP, and the way it must be increased in payment, is set by legislation. GMP differs between most men and women because the State Pension Age used to be different for men and women. As a result, men and women built up GMPs at different rates, and GMPs are payable on different dates.
  • 3. What is the issue?
    • Pension benefits have generally had to be equal for men and women since 1990. The position concerning GMPs was unclear until the recent High Court case, which clarified that GMPs should also be equal. This means that the way the UK Government treated GMPs was not in line with the High Court ruling. As a result, GMPs remain unequal in some cases. Pension schemes must now address this inequality. The legal ruling provided guidance on how this inequality can be addressed, and the Trustee and Company plan to take action in line with the legal ruling. This issue is commonly known as ‘GMP equalisation’ in the pensions industry. You may already have read about GMP equalisation in the news or within the Plan’s annual newsletters. 
  • 4. What needs to happen?
    • The legal ruling requires us to carry out a one-off calculation to adjust for unequal GMP earned between 17 May 1990 and 5 April 1997. GMPs earned before 17 May 1990 are not covered by the court ruling and do not need to be equalised. We would work out whether, over your expected lifetime, the total value of your pension built up between those dates is less than the equivalent total value of pension that a member of the opposite sex in the same circumstances would be entitled to. We would apply an increase to any member whose benefits are lower in value than they would have been had they been of the opposite sex and reimburse members who have lost out in the past with a one-off payment. This ensures that since the date of your retirement to now, you have not been disadvantaged.

      To meet the equalisation requirement, we are also proposing to carry out a one-off calculation and convert all pensioner and dependant members' GMP into a different form of pension. In line with the rules, we have also decided to convert GMPs for all pensioner members who left the Plan before 1990, even though equalisation does not apply to them. This will  help to simplify the administration of the Plan. This is known as 'GMP Conversion'.

      GMP conversion 

      Converting GMP into a different form of pension will:

      • Remove inequalities between male and female pensions (for pensions earned from 1990 onwards) arising from GMPs – providing each member with the more valuable of the two.
      • Simplify your Plan pension and the future administration of the Plan, as they will no longer be tied to complex GMP legislation. 

      Every Plan pensioner and dependant member with a GMP (whether or not their pension has changed as a result of GMP equalisation) will have their GMP converted into a different form of pension. 

      If we do not convert GMPs, the Trustee will be required to carry out more than double the calculations currently needed to pay benefits. This would create a greater administrative burden, which, as well as being costly in the long run, creates a higher risk of errors arising.

      Remember: The current amount and expected total value of your pension will not go down as a result of GMP Equalisation and GMP Conversion.
  • 5. What is your proposed method for GMP conversion?
    • We propose to make as small a change to benefits as possible. For all pensions built up between 6 April 1978 and 5 April 1997, we would remove any adjustments relating to GMP which may otherwise have occurred at age 60 for women or 65 for men (impacting only those members currently below age 65). 

      Your pension built up between 6 April 1978 and 5 April 1997 is currently made up of a combination of pension elements. The pension increases on each element will be unchanged, but the split of GMP and Plan pension built up alongside GMP may need to change to meet applicable legislation. 

      There will be no change to the pension increases on each pension element as part of GMP conversion. 


      • The current annual amount of Plan pension you receive will likely be unchanged but may increase marginally in some cases. The current annual amount of Plan pension would not be reduced. 


      • The split between different elements of Plan pension may be slightly different. This means that future increases to the total annual amount of Plan pension in the future may be marginally different. The expected value of your benefits over your lifetime would not be reduced. 

      To ensure that the value of your benefit is protected, the Scheme Actuary is legally required to certify that any change will not reduce the expected value of your benefits over your lifetime (based on the financial assumptions used as part of the calculation process). 

      There will be no change to any pension you have built up in the Plan after 1997.
  • 6. Can the Trustee make the proposed change? 
    • Yes, pensions law does allow the Trustee to change the Plan’s benefits in this way with agreement from the Company, which it has secured. However, certain steps need to be taken first, given that the change we are proposing affects benefits already built up, even though it is just the shape of the benefit which is changing and not the value. 

      Accordingly, we have consulted with all affected members of the Plan and having reviewed the feedback received, we will be proceeding with our proposal as originally planned.
  • 7. Could there be any tax implications? 
    • The Trustee is required to carry out GMP equalisation. If you receive an increase in your annual Plan pension or any back-payments, then these would be taxed in the usual way. As a result, there may be tax implications if the GMP equalisation exercise leads to an increase in the current annual amount of your Plan pension or the receipt of back-payments. 

      Our proposals for GMP conversion have been designed to minimise any negative tax implications. 
PIE option - Pensioners and Dependants only
  • 1. Why are you offering me a choice (Pension B)? 

    • This option will only be available to certain eligible members.

      Flexibility to suit your circumstances

      We need to address the historical inequality, and by offering you a choice as part of doing so, we are providing you with flexibility. You have the opportunity to manage how your pension changes in a way that best suits your circumstances.

      Increasing certainty of future Plan costs

      The Company is responsible for supporting the Plan. If some Plan members select Pension B and give up some of their future pension increases for a higher pension now, it will help to make the future cost of benefits from the Plan easier to predict, which in turn helps the Company to plan for the future. You do not have to choose Pension B just because it helps the Plan and the Company.
  • 2. Have all members received this option?

    • Not all members have received this option because eligibility is based on when you built up your pension in the Plan.

      We are also carrying out the calculations in stages so members with benefits in different sections of the Plan may receive an offer at different points in time. In addition, all eligible members currently included in the offer were given the choice whether or not to receive an option pack, with a minority choosing not to.
  • 3. Do I have to take up the PIE (or Pension B) option?

    • No, you don't have to take up the PIE (or Pension B) option.
  • 4. How do I receive an acceptance form to take the PIE (or Pension B) option?

    • You will need to contact Origen:

      Email: [email protected]

      Tel: 0800 092 8079 (UK) +44 800 092 8079 (overseas) Lines are open Monday to Friday, 9am to 5pm except bank holidays.
  • 5. What if I don't return the PIE acceptance form?

    • If we don't hear from you, we'll assume that you don't wish to take up the PIE (or Pension B) option.

  • 6. How does the current level of inflation affect the PIE (or Pension B) option?

    • If you have inflation-linked pension increases, inflation directly impacts the level of pension increases that you receive in the Plan and would be exchanging if you chose the Pension B option. If you have fixed pension increases (as a large proportion of members in certain sections of the Plan do), current UK inflation does not reflect the increases you receive in the Plan.

      A PIE option works by calculating a value for the future pension increases you would give up if you choose the PIE option. We then use some of this value to give you a higher pension now.

      If you have inflation-linked pension increases and inflation is particularly high, the value of your increases would also be higher, which would mean you're offered a larger uplift to your pension now. If you have fixed pension increases, the uplift to your pension is not impacted by current high levels of inflation.

      Choosing whether to take up the Pension B option is a decision that will affect the pension you receive until you die. It's therefore important to focus on long-term inflation and not current inflation.

      You can discuss inflation with Origen on your advice call. Your option pack tells you if your pension increases are inflation-linked.
  • 7. Will the PIE (or Pension B) option be available to me again in the future?

    • There are currently no plans to provide a PIE (Pension B) option again to those pensioner members included in this exercise.
  • 8. Why is there a time limit for choosing the PIE (or Pension B) option?

    • The option has to be fixed for a limited period of time because the assumptions used to calculate it (for example, your age and inflation) will change over time.
  • 9. What should I do if I haven’t received an offer pack?

    • If we've written to you earlier this year about this offer and you believe you should have received an option pack, but haven't, please contact the helpdesk using the details within the Contacts section.
  • 10. Who can I speak to if my numbers look incorrect?

    • Please contact the helpdesk using the details within the Contacts section.
Financial Advice - Pensioners and Dependants only
  • 1. How were Origen chosen?

    • We chose Origen to advise members who are eligible for the PIE option following a thorough selection process.

      The final selection of Origen was based on a number of criteria, in particular their expertise in giving advice on pension options such as the one that's being made available to eligible members.
  • 2. How do I get in touch with Origen?

    • Details on how to contact Origen are provided on the Contacts page and in your option pack (if you chose to receive one)
  • 3. How do I access Origen's member portal?

    • Origen's secure online Client Portal is designed to assist you. You can find information from Origen regarding your pension options in one place, view helpful guides and videos, arrange your advice appointment, securely send and receive documents and receive regular updates as you move through your journey with Origen.

      You can register onto the Client Portal via https://goodyear.origenportal.co.uk/register or by using the QR code in your communication. The communication provides the pin code that you will need as part of registration.

      Once you've logged into the portal, you'll be able to book an appointment with an Origen adviser and track progress.
  • 4. If I want to use my own financial adviser, do I need to use Origen as well?

    • You will need to receive financial advice from Origen, however, you can also use your own financial adviser in addition to Origen, but this would be at your own cost.

      Origen's advisers have been trained about the Goodyear Dunlop Tyres UK Limited Pension Plan and this pension option, so are well-placed to make sure you understand your options.

      This is an important decision, and we therefore require all members to speak to Origen prior to making a decision.

      Speaking to Origen in no way obliges you to take a particular option. As a reminder, your advice session with Origen is paid for by the Trustee.
  • 5. Why can't Origen advise me if I am based overseas?

    • Origen is an expert on UK pensions and tax and authorised to give advice in the UK, but not in other countries.

      If you live overseas, you still need to register with Origen so they can give you guidance about your options, which the Trustee will pay for, but they can't give you a formal recommendation about whether you should take up your Pension B option.

      The exception to this is if you live in the U.S., in which case, Origen won't be able to give you financial advice or guidance. As such, you will not be able to select Pension B, you will automatically default to Pension A from March 2025.
  • 6. Can I take the PIE (or Pension B) option if Origen advises me not to?

    • Yes, you can take up the PIE option even if Origen recommends you do not. However we encourage you to consider Origen's recommendation carefully.
  • 7. Will the Company or Trustee see the advice I am provided?

    • No. The advice you receive from Origen (and your own financial adviser if you choose to take additional advice) is confidential to you.
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