GMP Query - Help!

xylophone

Those people who reached state pension age before 6 4 2016 will see no change in the way their state pension is indexed - they will receive their statements of benefit each March as heretofore.

Those who start receiving their state pension in the current tax year will have any "protected payment" indexed by CPI.

The NSP will be indexed under the triple lock arrangement.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf

http://www.publications.parliament.uk/pa/cm201516/cmselect/cmworpen/926/92605.htm

DairyQueen

I am learning fast. Thank you for the information.

hyubh

xylophone wrote: »

The high fixed rate index linking did not always work in a pensioner's favour under the old state pension scheme.

Consider a deferred pensioner who arrived at state pension age under the old state pension scheme with a very high pre 88 GMP. In some cases, the GMP could represent a large proportion of his pension.

Erm, but they will have a very high pre-88 GMP that the scheme will not be able to frank (assuming a post-85 leaver). How is this not working in the pensioner's favour...?

xylophone

Erm, but they will have a very high pre-88 GMP that the scheme will not be able to frank (assuming a post-85 leaver). How is this not working in the pensioner's favour...?

But that part of the pension that relates to pre 88 GMP will not be increased via the state pension nor will it be increased by the scheme pension.

Have a look at RDH Ainsworth Barclays Bank Retirement Scheme on Google.

xylophone

See also State Second Pension: Contracted-out
deductions
Standard Note: SN/BT 2674
Last updated: 10 March 2010
Author: Djuna Thurley
Section Business and Transport Section