Public Service Pensions: Guaranteed Minimum Pension Indexation consultation
Seeks views on how the government proposes to continue to meet past commitments to public servants regarding the full indexation of public service pensions, including any GMP element.
On 6 April 2016, the government introduced the new State Pension (nSP). The reformed system simplified pension provision but removed the mechanism that enabled those public servants in ‘contracted-out’ employment between 1978 – 1997 to have their Guaranteed Minimum Pension (GMP) fully price protected. An interim solution was introduced, which was later consulted on and extended until 5 April 2021.
The government is today publishing a consultation on how it proposes to ensure it continues to meet these past commitments to public service employees regarding the full indexation of public service pensions, including for any related GMP element for members of public service pension schemes. The consultation considers the policy options available to the government.
Members of the public and interested bodies are invited to respond to the consultation. The government will carefully consider the responses before announcing a policy decision.