Public Service Pensions: Guaranteed Minimum Pension Indexation consultation
Download the full outcome
Detail of outcome
The government is very grateful for the 31 responses it received from private individuals, pension advisers, public service pension schemes / scheme administrators, local government bodies / pension funds, trade unions and other representative organisations and private sector organisations.
Having considered the responses, the government has decided to discount conversion as a long-term policy solution and make full GMP indexation the permanent solution for public service pension schemes. This approach will mean that public service pension schemes will be directed to provide full indexation to those public servants with a GMP reaching State Pension age beyond 5 April 2021.
Original consultation
Consultation description
On 6 April 2016, the government introduced the new State Pension (nSP). The reformed system simplified pension provision but removed the mechanism that enabled those public servants in ‘contracted-out’ employment between 1978 – 1997 to have their Guaranteed Minimum Pension (GMP) fully price protected. An interim solution was introduced, which was later consulted on and extended until 5 April 2021.
The government is today publishing a consultation on how it proposes to ensure it continues to meet these past commitments to public service employees regarding the full indexation of public service pensions, including for any related GMP element for members of public service pension schemes. The consultation considers the policy options available to the government.
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.
Documents
Last updated 23 March 2021 + show all updates
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Response to consultation published
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First published.