Statutory Guidance: On the use of Guaranteed Minimum Pensions (GMP) conversion legislation
The GMP is the minimum pension an occupational pension scheme, contracted out of the Additional State Pension between 6 April 1978 and 5 April 1997 on a salary related basis, has to provide to its members.
The guidance confirms that government does not consider there to be a single method by which schemes can equalise benefits for the effect of GMPs, and it suggests trustees still need to decide the most appropriate methodology for themselves.
However, it does put forward a number of different methods that trustees can choose from.
