GMP increases

The increases payable by the Scheme on the Guaranteed Minimum Pension (GMP) element of your BTPS pension are determined by the BTPS rules and relevant legislation.  No changes have been made to the increase provisions in the BTPS rules.  However, the government has changed the law and this impacts the increases which will be payable on your GMP in future. 

In summary, the GMP is the amount of pension built up in the BTPS and which the BTPS must provide to you as a result of your employment being contracted out of SERPS/ State Second Pension (S2P) up to 1997.  

The position may be different in other pension schemes so please check those if you have other pensions outside of the BTPS. 

If you reached State pension age before 6 April 2016, the government will continue to pay the increases on your GMP built up before 6 April 1988.  The Scheme will continue to pay increases on the GMP element of your BTPS pension that was built up after 5 April 1988, in line with orders published by the government, up to 3% each year.   Any increase above 3%, on the GMP you built up after 5 April 1988, will be paid by the government.  Increases paid by the government will be paid along with your basic State Pension and any additional State pension you receive.

If your State pension age is on or after 6 April 2016 and up to and including 5 April 2021, any increase due on the GMP element of your BTPS pension will be paid by the Scheme.

If you reach State pension age after 5 April 2021 any increase on the GMP element of your BTPS pension will depend on the application of the BTPS rules and relevant legislation at the time.  We are not able to be more precise at this time as the government has not yet decided what the requirements will be.