Open consultation Guaranteed Minimum Pensions Fixed Rate Revaluation

Summary

The Department for Work and Pensions (DWP) has published a consultation seeking views on the proposed continuation of 3.25% per annum as the rate of revaluation applied to fixed rate revaluation of Guaranteed Minimum Pensions (GMPs) for early leavers.

Consultation description

The author for this consultation is the Department for Work and Pensions. As such, all consultation information and related documents can be found at Guaranteed Minimum Pensions Fixed Rate Revaluation - GOV.UK

This consultation seeks views on continuing the fixed-rate revaluation of Guaranteed Minimum Pensions (GMPs) at 3.25% per year for members who leave contracted-out pension schemes between 6 April 2027 and 5 April 2032.  The proposal aims to maintain the current rate used to increase GMPs for early leavers before they reach pension age. 

It is aimed at pension administrators and employers sponsoring formerly contracted-out defined benefit pension schemes, but also invites feedback from trustees, pension industry professionals, scheme members, representative organisations and other interested parties. 

In general, Northern Ireland’s pensions policy and legislation operates in line with Great Britain, and there is, in effect, a single pensions system across the UK. It is anticipated therefore that any legislative changes will also be introduced here, subject to the necessary Ministerial, Executive and Assembly approvals.