(Guaranteed Minimum Pension)
The idea, quite simple really, was to give an individual whose employment had been contracted out of the State Earnings Related Pension Scheme between 6 April 1978 and 5 April 1997 broadly equivalent benefits as if they had stayed in.
We know communicating GMPe is a real challenge because it’s such a complex subject, and so we’re really pleased to see an industry initiative which will support schemes explain how GMPe affects pension savers in a straightforward way. We believe this could drive consistency in communication across the industry, which would be incredible. This will be particularly important where people have multiple employers across their working lives. They could be receiving GMPe communications from several different sources, and if they all look different this will be so confusing. GMPe may be very complicated, but your communications don’t have to be.
We were all going through the process of working out how best to communicate GMP equalisation so we thought why not collaborate? We’ve done that, but we also want this to be of benefit to all schemes.
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