Consultation outcome

Indexation and equalisation of GMP in public service pension schemes

This consultation has concluded

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Detail of outcome

The government is announcing its response to the consultation on guaranteed minimum pension (GMP) indexation and equalisation in public service pension schemes. The government consulted between 28 November 2016 and 20 February 2017.

This consultation was about how government should continue to meet its obligations to index (price protect) and equalise (make equal payments to men and women) the pension entitlements of a certain group of public servants with an occupational pension known as a GMP.

This consultation received 62 responses, broadly in favour of the government’s objectives in continuing to ensure the GMP continues to be indexed and equalised. The government has been implementing an “interim solution” between 6 April 2016 and 5 December 2018. The outcome of this consultation is that this solution will be extended for a further two years and four months. This will cover those members of public service schemes with a GMP who reach state Pension Age on or after 6 December 2018 and before 6 April 2021.

During this period, the government will investigate the possibility of an alternative long-term methodology, known as “conversion”.

Original consultation


Seeking views on how to address the implications of State Pension reforms for guaranteed minimum pensions of public servants below State Pension age.

This consultation ran from

Consultation description

On 6 April 2016 the government introduced the new State Pension (nSP), designed to radically simplify pension provision, while ensuring that pensioners have security in retirement. Among the layers of complexity that are being removed is the Additional State Pension (AP) – a complex earnings related element of the old state system.

With the removal of the AP the government needs to consider how public service pension payments for a group of members should be increased in future. Specifically those who have accrued a guaranteed minimum pension (GMP) and reach State Pension age after 5 December 2018. If the government does not take action, an inequality in the payment of public service pensions between men and women may be introduced.

The government is today publishing a consultation on how best to treat GMPs for affected members of public service pension schemes. The consultation considers various options for addressing the issues of equalisation and indexation of the nSP reforms.

The government is separately consulting on a method by which private sector pension schemes can address the inequalities inherent in private pensions as a result of GMPs. While this consultation may be appropriate for private sector employers, the government does not consider this an appropriate method for public service pension schemes to meet their indexation and equalisation obligations.

Affected members of the public and interested bodies are invited to respond to the consultation. The government will carefully consider the responses before announcing a policy decision.


Published 28 November 2016
Last updated 22 January 2018 + show all updates
  1. Updated with the consultation response.

  2. First published.