BTPS sect B GMP query

solar_power

Both my OH and I are BTPS sect B members in payment with elements of GMP.
I get full annual increases on my pension but my wife only gets annual increases on the non GMP element of her pension, why is this?

fwor

You don't say how long she has been receiving her pension, but presumably just prior to taking her pension, she completed a Pension Option Form? On that form, did she elect to take Pension Increase Conversion?

xylophone

Did you reach SPA after 6/4/16?

Is your wife over 60? Has she reached state pension age? If so, when did she reach it?

Does your wife have pre 88 and post 88 GMP?

https://www.btpensions.net/information/gmp-increases

solar_power

Hi, thanks for answering

My wife started receiving her pension early due to medical retirement back in 2006 age 52

Not sure about the pension option form, will have to look into that.

I am 65

My wife is 64 and reaches her SPA next year at 65 yrs 11 mnths 6 days

My wife has pre and post 88 GMP.

xylophone

I am 65

You reached SPA after 6/4/16 - see link above.

https://www.btpensions.net/assets/uploads/documents/001389_BT_MemberBookletB_20.11.17_V2.0CF-14.35-no-vc.pdf

The BT Pension Scheme is following the Govt's interim solution for Public Service Schemes.

https://www.narpo.org/guaranteed-minimum-pension/

Public service pensions
The arrangements in place before 6 April 2016 ensured that public servants received indexation on their GMP, while preventing double increases. (HM Treasury guidance, May 2001). Because the mechanism in the old State Pension for providing full indexation of GMPs, is not part of the new State Pension, the Government had to consider how to deliver on commitments by previous governments that public service pensions would be fully indexed. In March 2016, it announced that those reaching State Pension age between 6 April 2016 and 6 December 2018 would receive a fully-indexed public service pension for life.

.......

From this report, the Government announced the extension of the current interim solution so that it applies to those who reach SPa on or before 5 April 2021.

Members of public service pension schemes with guaranteed minimum pension entitlements, who reach SPa on or after 6 December 2018 and before 6 April 2021 will be covered by this extension of the interim solution.

You say that your wife will reach SPA next year so would at first sight appear to be covered by the above.

However, it appears that she may be being treated under the old rules on GMP, possibly because she started taking her pension in 2006.

She reached age 60 in 2014?

Was she receiving increases on the whole of her pension (including GMP) up to this point?

Did she receive a letter in these terms from the Scheme Administrator when she turned 60 (female GMP age and formerly female SPA)?

Post 33
https://forums.moneysavingexpert.com/discussion/4532605/totally-confused-by-contracted-out-deduction-letter&highlight=gmp+revaluation%20%20&page=2

solar_power

Hi Xylophone,
Yes she reached 60 in 2014 and since then has received no rises on GMP.
Will have to check up about the letter from the admin.