Trustee consultation outcome on equalising Guaranteed Minimum Pension (GMP) benefits
18.11.2025
In July 2025, we confirmed that the government had asked UK pension schemes to equalise Guaranteed Minimum Pension (GMP) benefits. From 4 July to 2 September, the Trustee consulted with relevant members on their proposal for equalising GMP within the Scheme. During this period letters were sent to affected members, inviting them to respond with anything they wanted the Trustee to take into account when making a decision.
After carefully reviewing the small number of responses received, and consulting with the Company and relevant professional advisers, the Trustee has decided to proceed with their proposal.
The Trustee would like to take this opportunity to thank all members who responded to the consultation.
Who is affected?
Only members of the Defined Benefit and British Sugar sections with GMP benefits will be affected.
You will have GMP benefits included in your pension if any of the following apply:
- You paid into the Scheme at any point between 6 April 1978 and 5 April 1997.
- You transferred in GMP pension benefits built up in another pension scheme.
- You are receiving a spouse/civil partner’s pension inherited from someone who had a GMP.
If none of the above applies, or you’re a member of the Defined Contribution (DC) section, you won’t be affected.
We sent out letters to affected members (that we hold a current address for) to confirm the Trustee’s decision. If you think you may be affected, and did not receive a letter, please take a moment to check we have your current address.
What is GMP?
Prior to reform in 2016, the State Pension had two tiers. Everyone paid towards the basic tier of State Pension, but those in employment also contributed to the higher tier, known as the State Earnings Related Pension (SERPS), and later called the State Second Pension (S2P).
Employers offering occupational pension schemes could opt employees out of SERPS in exchange for reduced National Insurance contributions for both them and their employees. This was called ‘contracting out’.
GMP was introduced by the government as a protection to ensure that those who were contracted out did not receive less than those paying towards SERPS. Although GMP was abolished on 6 April 1997, pension benefits built up during the GMP period will continue to be linked to these old rules.
Why are GMPs being equalised?
The GMP was set by the government and linked to State Pension age. GMPs were calculated differently for men and women, leading to unequal pension benefits.
However, a court ruling in 2018 made it a legal requirement to correct this imbalance for GMPs built up from 17 May 1990 and all pension schemes are now working towards ‘equalising’ GMP. This will ensure that, going forward, men and women in the same circumstances receive the same pension for the GMP period. The Trustee needs to make changes to your pension to meet this requirement.
How will GMPs be equalised in the Scheme?
GMPs in the Scheme will be equalised using a method known as 'conversion'. This involves the Scheme actuary performing a one-off calculation to convert the GMP element of your pension into a regular pension benefit within the Scheme. As part of this process, they will check to ensure you are receiving as much as you would have done, had you been of the opposite sex. If they find it needs to increase, it will be increased.
- If you have not yet taken your benefits, the value of your pension at age 65 will be at least as much as it would have been, and in some cases it will be a bit higher.
- If you are already receiving a pension from the Scheme, your pension will either go up or it will stay the same. It will not go down.
Further information and next steps
We understand that GMP is quite complex and therefore if you have any further questions you are welcome to contact us. However, please keep in mind that we won’t be able to provide specific information about your pension until it has been reviewed.
Please note: We also won't be able to confirm if you can trivially commute (i.e. take your pension as a one-off lump sum) until after your pension has been converted.
This is a very big project; we are working on a case-by-case basis and not everyone’s pension will be checked at the same time and we appreciate your patience.
Please refer to your letter for further details about when your pension will undergo review, based on your circumstances.
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