Guaranteed Minimum Pension Fixed Rate Revaluation

This consultation seeks views on the proposed move from 3.5% per annum (pa) to 3.25% pa in the rate of revaluation applied to fixed rate revaluation of Guaranteed Minimum Pension (GMP) for early leavers. This new rate, subject to consultation responses, would apply to contracted-out members who leave pensionable service in the period 6 April 2022 to 5 April 2027.

In line with previous reviews, we have sought advice from the Government Actuary’s Department (GAD) on the rate of revaluation.

The aim of this consultation is to draw interested parties’ attention to and seek views on the proposed change to the rate of fixed rate revaluation for GMPs for early leavers. The proposed change in rate is due to come into effect from 6 April 2022.

We are asking specific questions on the advice within GAD’s report in relation to the new rate we are proposing.