Guaranteed Minimum Pension

The Local Government Pension Scheme (LGPS) is a contracted out pension scheme.  Any member paying pension contributions between 6 April 1978 and 5 April 1997 and who paid full rate, contracted out National Insurance contributions will have a G.M.P. entitlement providing that they are entitled to a State Pension in their own right.  The G.M.P. is the minimum amount of pension that would have been paid by the additional part of the State Scheme (SERPS which is now known as S2P) if contracted-in National Insurance Contributions had been paid to the State Scheme instead of pension contributions being paid to LGPS.

A G.M.P. becomes payable from State Pension Age and is split into 2 elements, pre 6 April 1988 and post 6 April 1988. The G.M.P. is not an additional amount to the LGPS benefits but forms part of those benefits.  All increases due on the pre 6 April 1988 G.M.P. are paid by the Department for Work & Pensions (DWP) as part of the State benefit.  The Clwyd Pension Fund pays increases up to a maximum of 3% on the post 6 April 1988 G.M.P. If the annual increase is over 3% the balance is paid by the DWP.

If you were a member of the LGPS between 6 April 1978 and 5 April 1997, and you are nearing state retirement age, the HMRC will write to you informing you of your G.M.P. amount.