Guaranteed Minimum Pensions

MouldyOldDough

I was wondering whether to expect a payment wrt GMP at age 65 ?

I was medically retired from Civil Service at age 47 (on a Classic Pension IHR).

I am now 61 years old

With only 30 years NI credits - I would not have received a Full SP - So I am now receiving SP Credits from DWP. And "should" have sufficient for a Full SP.

But I have just read an article https://www.unbiased.co.uk/discover/pensions-retirement/managing-a-pension/guaranteed-minimum-pension-GMP about GMP and wondered ?

I was contracted out for 30 years......

QrizB

MouldyOldDough said:

I was wondering whether to expect a payment wrt GMP at age 65 ?

I was medically retired from Civil Service at age 47 (on a Classic Pension IHR).

I am now 61 years old

With only 30 years NI credits - I would not have received a Full SP - So I am now receiving SP Credits from DWP. And "should" have sufficient for a Full SP.

But I have just read an article https://www.unbiased.co.uk/discover/pensions-retirement/managing-a-pension/guaranteed-minimum-pension-GMP about GMP and wondered ?

I was contracted out for 30 years......

Your CS pension statement should tell you what part of the CS pension is your GMP.

You can chek that you're on track to receive a full state pension here:
https://www.gov.uk/check-state-pension

molerat

You will not be receiving a separate "GMP pension" if that is what you are thinking.  The GMP is all rolled up in your CS pension and after the chaos caused by the introduction of the new state pension where it no longer paid the GMP uplift part the government decided that the interim full indexation of all public service pensions would be permanent - something most private sector pensions have not done.  In effect you will see no change to your pension due to GMP but the pension could be reduced by "NI modification" due to your contracting out - that bit appears every year in the annual newsletter you receive and I was waiting for it to happen but it didn't.

https://pensions.gov.scot/guaranteed-minimum-pension-gmp

https://www.civilservicepensionscheme.org.uk/media/uyzllaq0/pensioners_newsletter_2010.pdf

Silvertabby

The MOD Calc only applies to pre April 1980 pension and, during my LGPS time,  I rarely saw reductions of more than £3 per month.

That said, round about the time I retired, the LGPS were considering not doing the calc/reduction as the new software couldn't cope with it, and the admin costs involved in the manual calculation (they were a time consuming pain in the bum) were more than sucking up the losses.

molerat

Maybe it was chucked in the bin along with the GMP calculation.

Silvertabby

molerat said:

Maybe it was chucked in the bin along with the GMP calculation.

I suspect that was the case!  Mr S and I didn't have any MOD Calc reductions, either. 

MouldyOldDough

@QrizB

It looks as if I will be OK ?

My 67th birthday is in August 2030

Silvertabby

MouldyOldDough said:

@QrizB

It looks as if I will be OK ?

My 67th birthday is in August 2030

Only if you pay another 6 years of NI, either by working or paying voluntary Class 3s 

QrizB

MouldyOldDough said:

@QrizB

It looks as if I will be OK ?

My 67th birthday is in August 2030

Yes, if you keep getting credits from Apr 2024 to Apr 2030 you should qualify for a full new state pension (at whatever rate applies at that time).

MouldyOldDough

Silvertabby said:

MouldyOldDough said:

@QrizB

It looks as if I will be OK ?

My 67th birthday is in August 2030

Only if you pay another 6 years of NI, either by working or paying voluntary Class 3s 

I will be credited with all of those years - by DWP

pdx123

Wondering if someone could point me in the right direction.
I have very similar circumstances to a former colleague of mine, same company & final salary pension scheme, years of service, salary etc. Both took our pensions 10 years early. His pension was less than mine as he took 25% tax free, I didn't. He has just reached 65 and due to mgp has had a around 40% increase on his pension. I was 65 about 5 years ago and had no such increase. 
I have spoken to the pension provider & they don't seem to understand the point I am trying to make.....where do I go from here?