GMP Guaranteed Minimum Pension Element off Final Salary Pension

DT2001

Xylophone (who kindly helped me understand my schemes GMP rules) will correct if I’m wrong.
Are you thinking of taking your pension before the schemes NRA, if so could the revaluation of your GMP be offset against increases in your pension from date of drawing to 65? Each scheme has its own rules so I would check (if Xylophone agrees it is a possibility) with the administrators exactly what calculation applies. 

Lewiboy

I’ve checked the scheme rules and the GMP compounding rate is 4%. The £3.2 figure provided is an estimate at the 65 (it was approx £1.5k in 2018 - I dug out an old pension statement)

Given the GMP element isn’t paid until 65 this comes as a pleasant surprise.

I have not investigated the offset.

Thanks again 👍

xylophone

Given the GMP element isn’t paid until 65 this comes as a pleasant surprise.

It seems to me that you should check with the Administrator  the exact position regarding your GMP.

You say that you worked for this company between 1982 and 2010 and that your scheme uses Fixed Rate Revaluation in deferment  - for a person leaving in 2010 this is 4%.

https://www.barnett-waddingham.co.uk/comment-insight/blog/what-is-a-gmp/

When you left the Scheme, you should have been given a  statement of deferred benefits showing

Pre 88 GMP

Post 88 GMP

Excess.

You are now intending to draw this occupational pension ten years earlier that Scheme Pension Age presumably with actuarial reduction for early payment.

The question is what is the position in regard to your GMP and what will happen regarding any possible "step up" at age 65.

See https://forums.moneysavingexpert.com/discussion/comment/78096949/#Comment_78096949