Background 

GMP equalisation makes sure that both men and women get the same pension benefits from APS, addressing past inequalities in pension rules. Under UK law, for pensions earned from 17 May 1990 pension schemes are required to provide equal benefits and retirement ages for both men and women.  

 

The overall pension benefit payable from APS is equalised - the pension for both men and women is payable from the same age and calculated using the same method.  However, like most UK pension schemes, pensions built up in APS between April 1978 and April 1997 include a Guaranteed Minimum Pension (GMP).  The GMP forms part of, and is included within, the overall APS pension after a member reaches “GMP age”. Due to historical differences in state pension ages, men and women accrued GMPs differently, notably GMP age is 65 for men and 60 for women. As a result, men and women with identical work histories could end up with different GMP amounts, which created inequality. APS has undertaken a project for current pensioners to resolve this inequality. 

The Outcome for APS 

For each pension in payment, we have calculated how much GMP each member would have earned if they were the opposite gender. 

We have contacted all members directly if their pension in payment is affected by Guaranteed Minimum Pension equalisation (GMPe) and due an increase. The increased pension and back payments will be paid at the end of June 2025. 

If you have not heard from us, your pension in payment is not due an increase as a result of GMPe. 

 

Further information
Will the legal change result in an increase for all members? 

No, the legal change only applies to GMP built up between 17 May 1990 and 5 April 1997 therefore you needed to be contributing to the Scheme between these dates to be eligible. If you don’t have a GMP, or if you stopped accumulating GMP before 17 May 1990, you are not affected by this change.  If you do meet the eligibility criteria, your pension will only increase if the pension payable as your opposite gender is higher. 

What is the Guaranteed Minimum Pension (GMP)? 

Like many company pension schemes, APS was ‘contracted out’ of part of the State Pension arrangements (called SERPS) from April 1978 up until April 2016 when the Government introduced a new single-tier pension.  Members of APS during this period, paid a reduced rate of National Insurance contributions.  In return, APS guaranteed a minimum level of pension, called the Guaranteed Minimum Pension (GMP). 

 

Why did it take so long for GMP rules to change? 

The government believed that GMPs for men and women should be equalised.  In October 2018, the Trustee of the Lloyds Banking Group pension schemes sought clarification from the Court regarding how to achieve this. The Court ruled that the Lloyds Banking Group schemes must equalise GMPs for both genders, and this ruling applied to all pension schemes with GMPs. 

The Court also outlined methods for achieving equal treatment of GMPs. Implementing these methods required substantial changes to existing systems, and it has taken time for schemes to identify affected members, recalculate benefits, and make necessary adjustments. 

 

What if I haven’t drawn my pension yet? 

If you haven’t started drawing your pension we will calculate what your pension would be as the opposite gender and pay you the higher of the two at retirement date. 

What if I have transferred some/all of my pension? 

We will do a separate exercise to check whether GMP equalisation would have affected the amount transferred out of this scheme to another. 

 

Checking GMP for all affected members of a scheme involves a great deal of work. That work includes running through the scheme’s historical data back to 1990. We will contact you if you are affected. 

Are all pension schemes checking GMP at the same time? 

Different pension schemes are checking GMP at different times. Although many schemes want to complete this process as soon as possible, there is no formal deadline for completion. Your other pension scheme(s) will contact you separately if you are due an increase under that scheme.  

 

I am receipt of a widow(er)s pension.  Have my late partner’s benefits been checked and mine too? 

Yes, if you are receiving a spouse’s pension (as the surviving husband, wife, or civil partner of a scheme member), your pension is based on their GMP. We have checked how much GMP they would have earned if they were the opposite gender. If this would have resulted in a higher overall pension, your pension will increase to this higher level and we will contact you directly.