Less GMP earned before 6th April 1988: £ 65.00 Less GMP earned after 5th April 1988: £ 25.00 The increase due in April 2001 was calculated as: This included a GMP of £90.00 per month, of which £25.00 was earned after 5th April 1988. Mr Smith retired in 2000 at the age of 65. Total increase paid: £6.79 Service Post 5th April 1988: £50.00 x 3.3%, on Mr Jones’ GMP from April 2001 so that his total pension in respect of his service was increased by 3.3%. £155.82 x 3.3% = £5.14, so his pension was increased by £5.14 to £210.96 per month made up as follows: By the time he reached State Pensionable Age his pension was being paid at a rate of £205.82 per month made up as follows:Īt State Retirement Age, Mr Jones’ GMP was £50.00 per month, so the increase due in April 2001 of 3.3% was calculated as: Mr Jones retired in April 1987 with a pension of £150.00 per month. How does GMP affect how pensions increase is paid and calculated? Service Pre 5th April 1988: Otherwise we pay the increase on all of your pension, including your GMP. If you live in a country that has a social security agreement with the United Kingdom, we work out your increase in the same way as in the example. There is no GMP for the time you paid the reduced rate. I paid married woman’s reduced rate Contributions – do I have a GMP? The 2014 increase is under 3% though, so you’ll get the whole of the increase on your firefighters’ pension this year.

Except that if the increase is more than 3%, we only pay the increase on 3% and the government pays it on the rest. If you do, we pay the increase on the part of your GMP that’s for your membership after this date. It’s a bit more complicated if you have membership after 6 April 1988. (Remember, the government pays this.) What if I have membership after 6 April 1988? So when we pay the increase on your pension we pay it less the increase on your GMP. How does it affect me if I have a GMP?įrom state pension age the government starts paying the increase on your GMP (it’s paid along with your state pension). It only affects the way we calculate increases to your pension, and only from the time you reach state pension age. It’s also known as a contracted-out deduction, or COD. If you worked for your LGPS employer after April 1978 you built up something called a guaranteed minimum pension, or GMP.

It will affect me