Deferred Final Salary Scheme statement no longer showing GMP

outoffunds

I have been lurking on the board for a while and have the above question.

I recently received a new statement for a deferred Final Salary scheme pension that I have. It is only a small pension which I paid into for about 8 years in the 1980's. Up until how it has always included a breakdown including GMP and how any increase is split between the scheme and DWP.

On this new statement there is only one figure and it just says increases with be yearly in line with RPI calculated in September.

After reading on here would this possibly mean that the scheme have accepted responsibility for paying increases for what was the GMP as DWP have now backtracked that they were going to pay for part of the increase?

The pension is now with National Grid.

greenglide

Is you SPA after 5/4/2016 so the you are part of the STP "fun"?.

Under these circumstances I believe that the pension scheme does not, legally, need to inflation proof the GMP in whole or in part (pre or post 1988) but the public sector schemes are "expected" to do so by the government. Since it is a former nationalised industry is it a protected scheme? I believe that these are being expected to inflation proof as well.

xylophone

Even under the single tier, the scheme would have to inflation link the post 88 GMP by CPI up to 3%?

As we have discussed on previous occasions, https://forums.moneysavingexpert.com/discussion/comment/65583593#Comment_65583593 it does seem that the public sector schemes may now inflation link the the pre 88 GMP and the whole of the post 88 GMP, so that the whole of the pension will increase according to scheme rules (just as it does pre GMP age).

As you say, it may be that the old nationalised industries will do the same but the private industries? Who knows?

greenglide

Are you a "protected person" from the pre privatisation days? A "protected person" is not covered by the "statutory override" which allows "normal" pension schemes to recover the cost of the abolition of contracting out and the higher employers NI from the employer. This may also cover the inflation proofing of the GMP.

I find it unlikely that the pension scheme would already have changed their letters though, but they could have simply removed mention of the GMP. I am not at all convinced that the GMP appears on my annual statements (although in that scheme I only have post 98 years so there is no GMP).

outoffunds

Yes I joined this pension before British Gas was privatised so perhaps it is protected.

All previous statements have included a GMP breakdown in fact on my last statement from 2011 almost all of the pension was pre April 1988 GMP..

I paid in from 1979 to 1987.

zagfles

How old are you and are you male or female? Could be because you're over GMP age...

xylophone

I paid in from 1979 to 1987.

Your pension consists of pre 88 GMP and the excess.

https://www.nationalgridpensions.com/409/729/pension-increases

Are you male or female? When do you reach State Pension Age?

It is not wholly clear from the above link whether NG are still increasing the whole pension for those whose GMP age does not align with their SPA age which is what the public sector schemes like LGPS and CSPS are doing - see post 6 and 7 https://forums.moneysavingexpert.com/discussion/comment/65583593#Comment_65583593

There has been no definite indication that these schemes will take over the GMP increase obligation when the single tier comes in but to the extent that they have acted as above in the case of the GMP age mismatch, and that a promise of no further change in pension benefits for 25 years has been given, they may?

National Grid have said nothing definite about post single tier arrangements?

outoffunds

I am female and in my mid 50's.

xylophone

It is not wholly clear from the above link whether NG are still increasing the whole pension for those whose GMP age does not align with their SPA age which is what the public sector schemes like LGPS and CSPS are doing - see post 6 and 7

From this, it doesn't seem that they are https://www.nationalgridpensions.com/475/1054/pensions-increase-qa

xylophone

I am female and in my mid 50's

Then you will reach state pension age in around 2025?

The single tier legislation has now been passed.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf

Your deferred pension is revaluing in deferment - I would imagine that the National Grid would use "full rate" but you could check this. http://www.barnett-waddingham.co.uk/news/2012/07/revaluation-for-early-leavers/

It would seem that most of your pension consists of pre 88 GMP - the worst case scenario would be that once it came into payment, you would see no increase on that part of your pension at all.

It entirely depends on whether or not the Scheme will take over the obligation - you would have to make a formal enquiry of the Trustees?

xylophone

There has been no definite indication that these schemes will take over the GMP increase obligation when the single tier comes in

http://www.independent.co.uk/money/pensions/losers-who-never-knewin-the-switch-to-singletierpensions-9052425.html

https://www.whatdotheyknow.com/request/loss_of_increases_on_gmp_when_si

May be of interest.