How is GMP revalued?
As long as a person is an active member of a contracted out salary related pension scheme, their accrued GMP entitlement is revalued each year up to age 60 (women) / 65 (men) in line with the increase in national average earnings.
How do I calculate my GMP?
Use the revaluation of earnings factors to calculate your scheme member’s GMP….Calculate GMP earned from 6 April 1988 by dividing the total post 1988 revalued earnings factors by:
- the total number of years in working life (from 6 April 1978 or 6 April following 16th birthday if later)
- multiplied by 20%
- divided by 52.
What is my GMP age?
When will I get my GMP? If you qualify for a GMP, it will be paid from your 60th birthday if you are woman, or your 65th birthday if you are a man. In this respect it is not affected by increases in the state pension age.
What is pre-88 GMP?
From 6 April 1988 changes in legislation meant the Guaranteed Minimum Pension elements before and after this date are calculated in different ways. In pensions’ terminology, scheme service from 6 April 1978 to 5 April 1988 is known as Pre-88 GMP, and service from 6 April 1988 until 5 April 1997 is known as Post-88 GMP.
When can I draw my state pension born 1961?
Increase in State Pension age from 66 to 67, men and women
| Date of birth | Date State Pension age reached |
|---|---|
| 6 November 1960 – 5 December 1960 | 66 years and 8 months |
| 6 December 1960 – 5 January 1961 | 66 years and 9 months (2) |
| 6 January 1961 – 5 February 1961 | 66 years and 10 months (3) |
What does pre-88 GMP mean?
Guaranteed Minimum Pension elements
From 6 April 1988 changes in legislation meant the Guaranteed Minimum Pension elements before and after this date are calculated in different ways. In pensions’ terminology, scheme service from 6 April 1978 to 5 April 1988 is known as Pre-88 GMP, and service from 6 April 1988 until 5 April 1997 is known as Post-88 GMP.
Why is GMP deducted from my pension?
From state pension age the government starts paying the increase on your GMP (it’s paid along with your state pension). So when we pay the increase on your pension we pay it less the increase on your GMP. (Remember, the government pays this.)
When did contracting out end?
Contracting out ended in April 2016, but your contracting-out history will still impact how much state pension you get under both the old and the new system.
What does pre 88 GMP mean?
Can GMP be trivially commuted?
A trivial commutation lump sum can be paid at any time after GMP Age (age 65 – men; age 60 – women) or from age 55 if your pension does not include a Guaranteed Minimum Pension (GMP) entitlement. * The ‘cash equivalent value’ represents the value of your whole pension, in cash terms.
What will be the State Pension in 2021?
The full rate of the new State Pension will be £179.60 per week (in 2021/22) but what you will get could be more or less, depending on your National Insurance (NI) record. You can check your how much State Pension you could get on the government website or, you can request a paper statement if you prefer.