e petition to have loss of Guaranteed minimum Pension (GMP) indexation reinstated by the DWP

Billopp

xylophone

The above is not relevant to the question of GMP increases.

I agree but just thought it should be brought to people attention that there were other changes under the NSP as well as loss of GMP indexation that make people much worse off.

Pre88GMP

What annoys me about this is I didn't see it coming. Even today the Administrators of my pension scheme send out annual pension statements saying that the GMP increases are added to my state pension. I have been telling them for over a year that they are wrong but they insist the Government pays. They show no differentiation between the old State pension where you get the increase and the new State Pension where you don't. So for 6 years they have been misleading many of their members. 90% of my pension is pre 88 GMP which sees no inflationary increase.

Sure you can buy extra N.I. years but only if you know you need to and have the spare cash. My N.I. record showed over 40 full years but not that some of those years didn't count.

I have signed the petition but something needs to be done to tell people about what the Government has done. Fact sheets on .gov.uk are just not good enough.

xylophone

What annoys me about this is I didn't see it coming.

Are you still under state pension age?

If not, what exactly does your State Pension Forecast say?

Is the occupational pension to which you refer already in payment?

If not, is it a deferred pension?

If it is in payment, have you already reached GMP age?

Is/was it a public service pension?

If the pension was deferred, what method was used to revalue the GMP in deferment?

That is to say, Fixed Rate/Full Rate/ Limited Price Indexation?

Pre88GMP

You highlight interesting points that when I first questioned my pension Administrators I had no idea about, not even what GMP was. I am now on the new state pension.  My occupational pension was fine until I hit 65  (scheme retirement age was 60) but even then it didn't dawn on me that something was amiss. Last November I queried the Administrators of my Scheme who said I needed to write to the DWP as 'they could see no reason why I shouldn't be getting the GMP increase added to my state pension'. That was 5 years after the introduction of the new state pension.
It was the DWP who put me straight!
They told me my pension provider had opted for a fixed rate GMP. They also told me I didn't  have enough N.I. contributions for a full pension but could make up the shortfall by handing over a large sum of money. The company I worked for started life as a Government Organisation which was subsequently privatised, a bit like BT but I don't believe it had a Civil Service mirroring agreement. Final Salary, index linked, guaranteed, that's what it said in the glossy booklet!
Going back to the original point, how many people know any of this stuff. I don't and it does my head in. My Administrators don't even know what happens to the increases on my wife's pension should I die first. What sort of increases will she see if GMP is 90% of my pension? Seeing as now she won't inherit some of my 'New State Pension'.
What else has the Government not told me.
Time to go and lie down, rant over.

hyubh

Pre88GMP said:

I am now on the new state pension.  My occupational pension was fine until I hit 65  (scheme retirement age was 60) but even then it didn't dawn on me that something was amiss. Last November I queried the Administrators of my Scheme who said I needed to write to the DWP as 'they could see no reason why I shouldn't be getting the GMP increase added to my state pension'. That was 5 years after the introduction of the new state pension.

That's pretty bad! Not infrequently I see someone posting an administrator response in here where I think, 'well that's stating the general situation yes, but what about scheme specifics?' (So the things xylophone has just listed, basically.) That's not even stating the general situation correctly though!

Marcon

Pre88GMP said:

You highlight interesting points that when I first questioned my pension Administrators I had no idea about, not even what GMP was. I am now on the new state pension.  My occupational pension was fine until I hit 65  (scheme retirement age was 60) but even then it didn't dawn on me that something was amiss. Last November I queried the Administrators of my Scheme who said I needed to write to the DWP as 'they could see no reason why I shouldn't be getting the GMP increase added to my state pension'. That was 5 years after the introduction of the new state pension.
It was the DWP who put me straight!
They told me my pension provider had opted for a fixed rate GMP. They also told me I didn't  have enough N.I. contributions for a full pension but could make up the shortfall by handing over a large sum of money. The company I worked for started life as a Government Organisation which was subsequently privatised, a bit like BT but I don't believe it had a Civil Service mirroring agreement. Final Salary, index linked, guaranteed, that's what it said in the glossy booklet!
Going back to the original point, how many people know any of this stuff. I don't and it does my head in. My Administrators don't even know what happens to the increases on my wife's pension should I die first. What sort of increases will she see if GMP is 90% of my pension? Seeing as now she won't inherit some of my 'New State Pension'.
What else has the Government not told me.
Time to go and lie down, rant over.

Far from ranting, I think you are making some excellent points - and I can understand why you've now gone to lie down in darkened room...

Clearly you have been given both incorrect information and 'no information' (in respect of your wife's pension if you die first). Could I suggest you now start the Internal Dispute Resolution Procedure (IDRP) to ensure you do get answers - correct ones. Your scheme administrators will be able to send you a copy, or if your scheme has a website, you may be able to download from that - IDRP is scheme-specific, so there's no 'general' link you can use. Free, impartial help is readily available at all stages of the IDRP from https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-problems

xylophone

My occupational pension was fine until I hit 65  (scheme retirement age was 60) but even then it didn't dawn on me that something was amiss. 

There was nothing amiss as such. You would have been receiving your pension/increases as specified under scheme rules.

They told me my pension provider had opted for a fixed rate GMP. 

Even had you reached SPA under the old system, you could have found that your GMP received no indexation through the state scheme.

See https://forums.moneysavingexpert.com/discussion/comment/79565256#Comment_79565256

As far as I can gather, there were few scheme booklets which explained this.

With regard to your new state pension, if you have the time and inclination, you may find this booklet (produced by RL back in 2016) an informative read.

https://www.dpf.org.uk/explorer/files/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf

xylophone

Is your wife also receiving a new state pension?

Pre88GMP

Thanks for the useful comments. A few extra bits about my journey getting here.
It is not just related to GMP so apologies for thread drift. As such, no response is required.

My wife is now receiving a full New State Pension. She was born in the 1950's so had an extra 6 years added to her sentence. She has no occupational pension.

I started a Stage 1 complaint which uncovered an error in calculating my starting pension. That error resulted in an incorrect lump sum. The back dated monies were then used to buy back missing N.I. years.
However it raised further questions so I raised a Stage 2 complaint.
Briefly, my scheme booklet says that 'ALL my pension is Guaranteed to increase by inflation', not just 10% of it. The booklet, from 1997, has no mention of GMP increases.
No reply to the question of my wife's pension and an unsatisfactory reply as to why my Scheme Excess which, when I left in 1988, was more than it is today, so asked if I had been Franked. Apparently not.  I suppose that's what a fixed rate GMP increase does when inflation is low.
I also asked for an audit trail of the scheme rules that showed changes to my benefits.
The stage 2 response failed to investigate all of the points I raised so the ball is back with the Trustees.
I have been offered compensation for the 'distress and inconvenience' but I am reluctant to accept as it includes a clause which states '....full and final settlement of any claim I have or MAY have....' I am concerned that acceptance might be the excuse to close the case.
I have resigned myself to bad news.
I expect I didn’t read the small print!

xylophone

Briefly, my scheme booklet says that 'ALL my pension is Guaranteed to increase by inflation', not just 10% of it. The booklet, from 1997, has no mention of GMP increas

 You might like to look up Pensions Ombudsman Mr Ainsworth Barclays Pension Scheme.

I am assuming that there was an earlier version of your scheme booklet?

With regard to 1997, there was a change in legislation which ended the GMP system.

You might find this of interest.

https://techzone.abrdn.com/public/pensions/Tech-guide-guaranteed-min-pen

With regard to the new state pension and GMP

https://commonslibrary.parliament.uk/research-briefings/sn04956/

https://www.gov.uk/government/publications/new-state-pension-if-youve-been-contracted-out-of-additional-state-pension/guaranteed-minimum-pension-gmp-and-the-effect-of-the-new-state-pension