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 in which it was received, 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

If you have interest income from other sources that is close to, or exceeds the annual allowance, you may contact the administrators to confirm the level of interest on your arrears payment.

UNCONVERTED MEMBERS

We were not able to convert all members at the time of the original conversion due to specific aspects of individual benefits.  The remaining pensioner and dependent members were converted in March 2025, with interest paid up to that date.

Active and deferred members now have their GMP converted at retirement.

A second related legal ruling required schemes to equalise benefits for members who transferred out of the Scheme.  The Trustee does not yet have a timeline for completing this exercise but progress remains ahead of most other schemes.