GMP equalisation and former Scheme members
The Trustee recently got in touch with former members about a top-up payment that may be due in relation to the pension benefits they transferred out of the Scheme.
If you’ve received a letter from a company called Aon asking you to confirm your details, don’t be alarmed. We can reassure you that this letter is genuine. Your letter includes a series of Questions & Answers explaining why you may be due a top-up payment.
The top-up payment relates to a High Court ruling about Guaranteed Minimum Pensions (GMPs), which requires UK pension schemes to equalise pension benefits built up between 17 May 1990 and 5 April 1997, as they were previously unequal for men and women. This process is called ‘GMP equalisation’.
Please confirm your details as set out in the letter. Aon will then send you more information about your top-up payment.
If you still have concerns
If you’re still concerned about the legitimacy of your letter from Aon, there are other steps you can take to reassure yourself.
- Read point 2 of HM Revenue & Customs ‘Guaranteed Minimum Pension equalisation newsletter — April 2022’.
- Call Aon on 0330 818 4060. The helpline is open on Mondays to Fridays from 9am to 5pm, excluding bank holidays.
- Contact MoneyHelper, the government’s free financial guidance service for pension and money matters by calling 0800 011 3797 on Mondays to Fridays from 9am to 5pm. Explain you’ve received a letter about a potential payment relating to GMP and your past transfer out. They’ll be able to confirm that UK pension schemes are legally required to carry out GMP equalisation in respect of past transfers.
If you have any questions about how GMP equalisation affects former Scheme members, or the process that the Trustee has put in place to make top-up payments, you’ll probably find the answer in our frequently asked questions.
GMP equalisation FAQsDoes this only affect former members?
No, the Trustee and its advisers are also reviewing the GMPs for current members of the Scheme. This is a large, complicated project and the Trustee wants to make sure it’s done carefully and accurately. As a result, the review will take some time to complete. If you’re a current member and the review identifies that your benefits need to be adjusted, the Trustee will write to let you know. You don’t need to take any action at this time.