GMP in payment confusion

Colinstewart76

Hi all

Looking for some guidance.  Currently reviewing a deferred DB pension entitlement within the Bradford & Bingley scheme.  Info provided for pensions in payment states the following:

Post 88 GMP:  For members reaching SPA before 6 April 2017 - from SPA increases are CPI to max 3% paid by the Scheme. For members members reaching SPA after 5 April 2017 - no increases payable by the Scheme.  

Have I missed something?  Are schemes no longer obliged to pay increases on Post 88 GMP where GMP age is reached from 6 April 2017.  I can't find anything to suggest this is possible.  

Suse1969

I've the same query with RBS today. I've just written to them about it. 

Colinstewart76

Ah thanks Susan.  The plot thickens....

henryhtapper

The only circumstances I can think of (off the top of my head) are where statutory post88 GMP increases in payment might fall away are:

 

• On entry to the PPF (not apparently the case here)
• If GMPs have been converted/simplified to non-GMP using the statutory mechanism

 

Suse1969

Thanks Henry - as Colin says, the plot thickens. Lets see what the administrators of these schemes come back with.

benjaminfabi

bump?

Suse1969

Oh yes - my RBS one was just a really confusing statement. No issues.

Colinstewart76

Sadly, one of the downsides of being outsourced is that we raise a query and ask our adviser clients to clarify. Sometimes don't get an answer back.