Help and advice about GMP (guaranteed minimum pension)

enthusiasticsaver

I have a GMP from Barclays Bank who I worked for between 1978 after leaving college until 1986 when I left to have my first daughter. The scheme is the 1964 pension scheme and when I left I thought nothing about pensions but received a certificate in 1986 when I left saying because the scheme was opted out of the state pension scheme I was entitled to a guaranteed minimum pension on my sixtieth birthday which is now in 5 years time. The amount on the certificate said it was £221 but will attract increases of 8.5% per annum.


I got a revaluation of £815.36 in 2001 which tallies with my spreadsheet calculation after factoring in 8.5% per annum on the £221 since 1986. Now though the Barclays pension administrators say due to a recent review they are no longer able to provide current values for deferred pensions or GMPs as it is down to the government to decide on the revaluation.


Has anyone had any experience of GMPs and revaluation at state retirement age as if the 8.5% increase set out on my certificate is honoured my pension in 2020 will be around £3840 per annum but I am now concerned the government will not honour this.

xylophone

You have a deferred pension with Barclays Bank.

Now though the Barclays pension administrators say due to a recent review they are no longer able to provide current values for deferred pensions or GMPs as it is down to the government to decide on the revaluation.

I simply do not understand this - but Towers Watson did not exactly cover themselves in glory when Mike Floutier sought information about his Barclays deferred pension - his case was complicated by the fact that he was male and taking his pension earlier than Scheme Pension Age). https://forums.moneysavingexpert.com/discussion/4736856


As a woman, your GMP age is 60 ( despite the fact that your State Pension Age will be around 66).

See http://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/

When you left, did your pension consist only of GMP or of GMP plus an excess? See http://www.barnett-waddingham.co.uk/comment-insight/blog/2012/07/24/revaluation-for-early-leavers/

Your statement of preserved benefits should show this.

Barclays have to pay you your GMP revalued by the method that they chose - in this case Fixed Rate Revaluation which was 8.5% at the time that you left.

Any excess will also be revalued- see above.

Once your pension comes into payment, Barclays will not have to increase that portion of your pension that equates to the revalued GMP as it is all pre 88.


The Barclays Scheme also has some form of abatement- you would need to clarify with Towers Watson (administrators of Barclays Scheme) whether this will apply at age 60 (former SPA age for females) or when you actually receive your state pension.
See post 40 https://forums.moneysavingexpert.com/discussion/4736856

With regard to State Pension see https://www.gov.uk/new-state-pension/overview

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

You might wish to obtain a state pension statement under the new rules when this is possible.

enthusiasticsaver

Thanks xylophone. I am trying to access the epa Towers Watson online account as we speak without success. I only have a GMP and no excess and you are correct my certificate says 8.5% on it. I have just read the link for GMPs which is useful. I have just spoken to the pensions advisory service as well but they have said there are so many changes going on at the moment that things may change again before 2020.

xylophone

I am trying to access the epa Towers Watson online account as we speak without success.

Perhaps their system cannot cope with the number of people trying to access it?

Or perhaps the site is down?

As i said in my previous, Mike Floutier seems to have had problems of communication in respect of his pension.

enthusiasticsaver

Yes I have just read the Mike Floutier thread and another thread by a poster who also seemed to have left Barclays about the same time I did, early to mid 1980s. The pension advisory service were quite flummoxed as to why Barclays pension administration were reluctant to give me a valuation in 2012 whereas in 2001 they were very accommodating and gave me what I considered to be an accurate figure based on the 8.5% fixed rate revaluation. However with the changes coming in re single tier pensions and no SSP2 I am unsure how this will affect my GMP when I come to draw it in 2020. I have emailed Towers Watson anyway and will see what they say.