GMP Indexation

Dec 23 2020

On 6 April 2016, the government introduced the new State Pension. This simplified state pension provision but removed the mechanism which allowed public service employees in "contracted out" employment to have their Guaranteed Minimum Pension (GMP) fully indexed against inflation. An interim measure was introduced which ensured that public service pensioners would have their GMPs fully indexed until 5 April 2021.

On 12 October 2020, the government published a consultation on "Public Service Pensions, GMP indexation". This consultation seeks views on the government's proposals for indexation of public service pensions, including any GMP element. The consultation closed on 30 December 2020, it can be found at: Consultation on Public Service Pensions, GMP indexation.

If your pension is larger than your GMP amount, then these proposals will not affect you. Once the consultation is complete and the government has agreed the future indexation method, Hampshire Pension Services will notify all members who are affected.