DC GMP increases in the New State Pension world

DanAtkinsonUK

In the old State Pension world for pre88 GMP the State Pension would pay any CPI increase from these benefits (post88 the scheme pays the first 3%). I recall reading that there was an impact now that we have the new system. Does anyone know more or have some good resources?

Thanks

Dan

richallum

Dan, this is a useful article from Barnett Waddingham (great site for all tech pensions stuff).  This is a useful overview article on Professional Adviser.

DanAtkinsonUK

Thanks Richard. They are really helpful links.

Suse1969

Glad I popped on here - thanks Dan for asking the question and Richard for the link. First DB analysis post 6/4 on my desk already so timing is perfect.

Billopp

The DWP will not be paying any of the pre 1988 GMP increases with the state pension for people reaching state pension age on and after 6 April 2016.

For some eason the DWP deny that they have ever paid GMP increases even though their booklets used to say they  did.

Because of their denial they did not tell Parliament so it could be discussed. The National Audit Office did an investigation into the subject at the request of Margaret Hodge the Chair of the Public Accounts Committee. "The impact of state pension reforms on people with Guaranteed Minimum Pensions"
https://www.nao.org.uk/wp-content/uploads/2016/03/The-impact-of-state-pension-reforms-on-people-with-Guaranteed-Minimum-Pension.pdf

It has also been investigated by Frank Field the Chair of The Work and Pensions Committee.

The DWP are refusing to write to anyone to tell them about loss of GMP increases.d

benjaminfabi

Congratulations @Billopp ;

You have won the award for the best pension geek happiness inducing post of the month (possibly the year). There is no prize sadly  

That, to a sad sod like me, is a wonderful link.

Thanks

Suse1969

Just goes to show how complicated they make things that it's hidden away. Thank you.