Consultation on Indexation of GMP in P.S. Pension Schemes

chris107

Has anyone contributed to or read this consultation?
https://www.gov.uk/government/consultations/indexation-and-equalisation-of-gmp-in-public-service-pension-schemes/consultation-on-indexation-and-equalisation-of-gmp-in-public-service-pension-schemes


It gives three main ways to deal with GMP and indexation after some public service pensioners reach their SPA. It appears to me that the best options are the last two given ("full indexation" and "conversion").
Could be worth making a contribution or finding out what contribution the relevant unions have made.

molerat

I would have thought that full indexation, even though "more costly", would end up the cheapest as there is less administration than in either the previous or other two proposed methods which carry a massive "!!!! up" factor risk of implementing a "new system".

Silvertabby

Molerat - I hope you're right! Mr S reaches SPA before the 2018 cut-off, so he's ok. I know one of the arguments for non-indexation are that those of us who reach SPA after 2018 will benefit from the the flat rate pension - but my State pension will still be calculated under the old rules.

Can't see where 2018 comes from in any case - someone who has always been contracted out could have a foundation amount of £119 per week as at April 2016.. Assuming they carry on working, they would accrue a further £4.45 per week State pension for every full year of NI conts, so by 2018 their State pension would be £127.90 - nowhere near the full flat rate of £155 per week. In my case, I have some post 2002 SP2 top up - but I'll still never make £155 per week by 2018.