Guaranteed minimum pension ruling

sshazza

I am a woman of 60 (born in the 50's) and due to goverment changes cannot get my pension til i am 66 but i do have a small SERPS pension of which i was going to collect in full last November, so i contacted WillisTowersWatson to claim my pension to which i was told i cannot have it due to a GMP court ruling stating all these pensions have been put on hold until the courts decide.



I was very angry as I was only a month away from taking this pension (the courts stopped payments being released in the October) I was not informed by my pension scheme of any of this until i emailed them to collect my pension in full.



I have tried to find anywhere of which i can email or speak to the new group GMPEWG to ask them if this is the case as i have read some pension schemes/trustees have paid out to their pension holders whilst waiting for the conclusion and will forward on any top ups as and when to them.



There is so little on the internet for those concerned on this ruling I just wanted to speak to other people who have been effected by this as it appears not only did i lose out on my pension at 60 but also on my SERPS goverment pension!


BTW I never received a letter either regarding my goverment pension being changed to 66!


Thank you any help on this matter would be greatly appreciated as my pension scheme administrates have not been helpful at all.

tempus_fugit

I have a GMP pension but I have not heard of any rulings in relation to them. In fact, I received a letter from my provider last week about my options at my 60th birthday. I wouldn't have thought they would have done that if they were "on hold". However, I am a male so I can't actually take the pension yet as the pension is not worth enough to pay the GMP, so I may have to wait until I am 65 to get it anyway, and maybe that is why I have not heard about anything. It would be interesting though to see what, if anything, is going on with these pensions, although I doubt it will enable me to get mine at 60, which the original one that it replaced would have.

Silvertabby

Despite the changes to State pension ages, GMP age remains 60 for a woman a 65 for a man.

The problem is that DWP are in the final stages of carrying out a massive GMP reconciliation exercise, and so OP's pension provider can't/won't pay out until they are sure that they are using the right GMP figures. Yes, some pension schemes have paid out on the basis 'that they will sort it out later' but others won't as they don't want to be in the position of having to recover money. Or just don't have the manpower/skills to do the manual recalculations.

xylophone

i do have a small SERPS pension of which i was going to collect in full last November, so i contacted WillisTowersWatson to claim my pension to which i was told i cannot have it due to a GMP court ruling stating all these pensions have been put on hold until the courts decide.

You mean that you have a deferred defined benefits pension consisting wholly or largely of GMP?

The delay may be due to the reconciliation exercise
https://www.pensionsage.com/pa/GMP-payments-delayed-due-to-HMRC-data-provision-postponement.php

but there is also the question of GMP equalisation raised by the LLoyds Court case.

https://www.ftadviser.com/pensions/2019/02/11/why-specialist-advice-is-critical-for-gmp-equalisation-process/

https://www.gov.uk/government/publications/equalising-pensions-for-the-effect-of-unequal-guaranteed-minimum-pensions/guidance-on-the-use-of-the-guaranteed-minimum-pensions-gmp-conversion-legislation

GMPEWG

Who is this?

Have you obtained a new state pension forecast?

https://www.gov.uk/check-state-pension

nigelbb

As state pension for men & women became aligned in November 2018 surely any GMP paid to anyone commencing their pension after that date cannot require equalisation? The OP states she she doesn't reach SPA until she is 66 which will be the same as a man with the same birthday.

xylophone

As state pension for men & women became aligned in November 2018 surely any GMP paid to anyone commencing their pension after that date cannot require equalisation?

The ruling affects a specific group of male and female workers who were “contracted out” of SERPS between 1990 and 1997.

https://www.lawdebenture.com/thought-leadership/trustee-focus-gmp-equalisation-light-at-the-end-of-the-tunnel

xylophone

GMPEWG

I have now found what this is.

http://www.pasa-uk.com/


https://www.willistowerswatson.com/en-GB/Insights/2019/07/gmp-equalisation-working-group-call-to-action

Seabee42

To be fair they could pay you and then top up the payments (if necessary) when your particular scheme equalises for GMPs in payment. The pension cannot go down the benefits overall have to be equalised up. I would ask them why they cannot do that.

nigelbb

xylophone wrote: »

The ruling affects a specific group of male and female workers who were “contracted out” of SERPS between 1990 and 1997.

AIUI the case hangs on discrimination over GMP occurring for those who reached pension age before last November because there were different ages for men & women. The OP is currently 60 so there cannot be any question of discrimination because she will be getting her pension at the same time & for the same amount as a man of the same age as calculations for GP will be the same for men & women as they have the same SPA.

xylophone

AIUI the case hangs on discrimination over GMP occurring for those who reached pension age before last November because there were different ages for men & women

GMP for a woman is payable at 60 and for a man at age 65 - this is unaffected by the change to SPA.

https://www.sackers.com/publication/the-high-court-decides-how-to-solve-a-problem-like-gmp-equalisation/

nigelbb

xylophone wrote: »

GMP for a woman is payable at 60 and for a man at age 65 - this is unaffected by the change to SPA.

https://www.sackers.com/publication/the-high-court-decides-how-to-solve-a-problem-like-gmp-equalisation/

Ah...I've just realised that this doesn't relate to pensions being paid out but to accrual before 1997 when GMP ended & SPA for women would have been 60 then.