GMP
The Trustee wrote to members in December 2022 to consult on
its proposal to convert Guaranteed Minimum Pension (GMP) benefits into an
alternative benefit following a legal ruling requiring schemes such as the PSS
to address an inequality relating to these historical GMPs.
The letters, and a more detailed “questions and answers”
document, are shown below:-
Pensioners and Dependants
Pensioner - Dependant Letter
Pensioner - Dependant Q&A
Active and Deferred Members
Active - Deferred Letter
Active - Deferred Q&A
Additional Q&A during consultation
Additional Q&A during consultation
After considering the feedback from members, the Trustee
confirms it is proceeding with the proposal as planned.
The majority of affected members benefits were converted in
September 2023. Members received a letter detailing the change to their
benefits.
INTEREST - TAX
Some members received a GMP arrears payment which included interest income.
The interest element was not taxable at source (i.e. the Scheme was not to deduct tax).
If the total interest income you received, including from other sources, was higher than your interest income allowance in the tax year 2023/24, you are responsible for reporting this to HMRC and paying any resulting tax due.
Income Tax band Personal Savings Allowance
Basic rate £1,000
Higher rate £500
Additional rate £0
In May 2024 we notified all members where the interest on the arrears was more than £250.
If you have interest income from other sources that is close to, or exceeds the annual allowance, but you have not received a letter, you may contact the administrators to confirm the level of interest on your arrears payment. Please remember that if you have not received a letter, the interest is less than £250.
UNCONVERTED MEMBERS
We were not able to convert all members at the time of the original conversion due to specific aspects of individual benefits. We continue to work with our providers towards completing this exercise for all members. Any change will reflect your benefits at the date of the calculation and you will receive interest up to the date of payment on any arrears that may be due. Please remember that most changes are small and the current amount and expected value over the lifetime of the benefits will not be reduced.