You are being offered the Pension B (PIE) option on two parts of your pension:

• the element of your GMP pension that has been converted to non-GMP pension; and
• the non-GMP pension which has been built up before 6 April 1997, providing your qualifying proportion is greater than zero.

If you built up some of your pension before 6 April 1997 and your qualifying factor is less than 100, part of your pension will remain subject to discretionary annual increases in the future (subject to Company approval).

Choosing the Pension B option (see question 3 below) is more likely to lead to tax implications compared to Pension A. 

This is one of the reasons why, if you are eligible for the Pension B option, we are providing you with paid-for impartial advice. Your Origen adviser will be able to explain any tax implications to you.

• Flexibility to suit your circumstances
  We need to address the historical inequality relating to some GMP benefits in the Plan, so we wanted to offer you flexibility through that choice.
  
  If you choose to receive an option pack, you will have the opportunity to manage how your pension changes in a way that best suits your circumstances.

• To help the Plan and Company
  As well as providing flexibility and choice to members, it will also benefit the Plan if some pensioners and dependants were to choose Pension B. This is because the Plan will keep some of the value of the future pension increases given up, in order to reduce its expected future costs and make these costs easier to predict.
  
  This is because at least part of the pension will then be fixed and no longer be linked to future increases in inflation, which are difficult to predict. 
  
  In turn, this will help the Plan and the Company in developing and agreeing future plans to maintain the financial health and support of the Plan.
  
  You do not have to choose the Pension B option because it benefits the Plan and Company.
  
  Equally, even if you take the paid-for impartial financial advice, you do not have to take up he Pension B option.

If you choose the Pension B option, you will receive a higher pension now. This higher pension will either not increase in the future, or it will increase in the future at a slower rate than  it would otherwise have done.

Your pension is made up of different parts, which increase differently depending on when you earned them. Whether your pension will increase over the future, and if so, at what rate is specific to your own circumstances and when you earned your pension.

Typically, where a member has earned their pension before April 1997, on choosing the Pension B option, they will see no future increase to their pension. However, if a member has pension earned after April 1997, this will usually continue to increase in the same way under either the Pension A or Pension B option. 

This is because pension earned after April 1997 generally needs to increase in line with pension laws and cannot generally be swapped for a higher non-increasing pension (there are some exceptions to this such as pension earned through AVCs). This means the increases a member receives after choosing Pension B will depend on when their pension was earned and will vary by individual member. 

Your option pack will explain the position for your own individual circumstances. Further, Origen will have full details of your pension increases and your pension details and can tell you more about this once you receive your option pack in Autumn 2024.

Please note, as explained in question 7 below and question 12 of the previous section, your decision to choose Pension A or Pension B does not impact any future entitlement to discretionary pension increases that may be awarded by the Company.

In Autumn 2024, members will receive personalised illustrations which will be specific to each individual, alongside some supporting information. 

The Trustee has appointed Origen, a regulated financial adviser, to help you by providing independent financial advice or guidance. The advice or guidance they give you will be completely unbiased and totally independent of the Trustee. 

Pension A will be the default pension for all members. Even if you do not believe that pension B will be your preferred option, you are encouraged to wait for the full pack to arrive and reach out to Origen to discuss the options to allow you to make your decision on a fully informed basis. You do not need to make any decisions about your pension now. 

Members are treated differently in this process depending on whether they are aged under or over 80.

Differentiating members in this way is in line with the Code of Good Practice under which these exercises are typically carried out. The Code of Good Practice makes the distinction as members aged over 80 are classed as ‘vulnerable’ and therefore work on the basis they should not be provided with the Pension B option or have their data shared with the IFA by default. Instead, this group of members need to make an active decision and return the form if they would like to receive further information. This is intended to protect the interests of members.

The process is summarised as follows:

• Members aged under 80 by default will receive additional information about the Pension A and Pension B option in September, and their data will be shared with Origen for the purpose of providing them with financial advice in relation to the options.
  
  However, they are given the option to ‘opt-out’ of the process if they choose. This means that they will not receive any further information about the Pension B option and their data will not be provided to Origen.
  
  Their pension will automatically be changed to Pension A in the future and they will receive a communication (assuming the proposal to equalise GMPs via GMP conversion goes ahead) confirming this.
  
  You do not need to make any decisions about your pension now. If you are unsure, we recommend that you do not opt-out of the process and wait to receive further details and personalised figures in the Autumn. 

• Members aged over 80 by default will not receive any details of Pension B and will not have their data shared with the IFA. Their pension will automatically change to Pension A in the future (assuming the proposal to equalise GMPs via GMP conversion goes ahead) and they will receive a communication confirming this.   
  
  If they would like to receive further information about the Pension A and Pension B options they should opt-in (via completion and return of the opt-in form provided). By opting in they are also providing their consent for their data to be shared with Origen and they will be able to contact Origen in the autumn for advice or guidance. 

Please see question 12 of the GMP FAQs.

As mentioned in question 5 above, the Trustee has appointed Origen, a regulated financial adviser, to help you by providing independent financial advice or guidance. 

Provided you have chosen to opt-in or have not chosen to opt-out (see question 6) to receiving additional information about the Pension B option then you will receive further details about the Pension B option in autumn 2024 (enclosed in an ‘option pack’). Within the option pack there will be full details of how to contact Origen. 

Please do not attempt to contact Origen before you receive your option pack.