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Gwynedd Pension Fund

GMP

Following the introduction of the State Earnings Related Pension Scheme (SERPS) in 1978, part of an employee’s National Insurance contributions were linked to the amount they earned. 

The LGPS contracted out of SERPS, resulting in all members paying a lower rate of National Insurance contributions. The LGPS had to meet the condition to provide its members with a pensions that was at least equal to that they would have received under SERPS. 

This pension was known as a Guaranteed Minimum Pension (GMP). 

GMP’s came to an end on 5th April 1997 and SERPS was replaced by the State Second Pension (S2P) in April 2002.

Your entitlement to a GMP

You may have a GMP entitlement if:

  • You were a member of the LGPS between 6th April 1978 and 5th April 1997. 
  • You are in receipt of a survivor’s pension in relation to a member with pensionable LGPS service between 6th April 1978 and 5th April 1997. The GMP will amount to half of your late partner’s GMP entitlement. However, for Widowers and Civil Partners the GMP will only be based on the service from April 1988 to April 1997.

If your LGPS Pension is lower than your GMP, your pension will be increased accordingly. It is payable from State Pension Age as part of your LGPS pension, not in addition to it. 

If your membership spans April 1988, your GMP will be split into two entitlements: Pre April 1988 values and Post April 1988 values. This will be shown on your payslip as GMP 78 and GMP 88. 

Pensions Increase

Your GMP entitlement will increase each April in line with the cost of living. The increase due on the GMP 78 will be paid with your State Pension. The first 3% of the pensions increase due on the GMP 88 will be paid by the Gwynedd Pension Fund, the remaining balance will be paid along with your State Pension.