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Guaranteed Minimum Pension Increases from April 2016

03 March 2016

In response to the introduction of the new State Pension in April 2016, the Government has announced Guaranteed Minimum Pension  (GMP) of public sector workers will continue to be price protected.

This means that those who reach State Pension Age on or after the 6th April 2016 and before the 6th December 2018 – when the State Pension Age equalises – will receive a fully indexed public service pension for their whole life.

This will ensure public service pension payments to these individuals continue to be equal between men and women.

What this means for NILGOSC and our members is as follows:

Member already reached State Pension Age (SPA) – no change

Member reaching SPA between 6 April 2016 and before 6 December 2018 – NILGOSC will pay the full normal pensions increase on their pensions (and those of their dependants) even if they have a GMP component.  This is a change as, prior to this announcement, the Government would have paid some of the increase on the GMP components once a member reached SPA and NILGOSC would have paid a slightly lower increase amount to reflect the fact that the Government was paying the remainder of the increase.  This means these members will continue to receive their NILGOSC pensions in full and they will also receive the new state pension.   

Member reaching SPA from 6 December 2018 – the Government intends to carry out a consultation later this year on indexation and equalisation of GMPs but overall seeks to balance simplicity, fairness and cost for members, public service pension schemes and the taxpayer.