Plan news Tax & Legislation

GMP Equalisation update and new benefit options

If you’re currently receiving a pension from the Plan, you should have received a pack through the post relating to Guaranteed Minimum Pension (GMP) Equalisation.

This will detail what the Plan Trustee is doing to address historical inequality relating to GMP benefits, following the outcome of a High-Court case (the Lloyds judgement) — which is something that is affecting most Defined Benefit pension schemes across the UK.

You can find out more about what the Trustee is proposing to do by visiting the Plan website at

And if you’re not yet receiving your benefits from the Plan, the Trustee is also currently working with their advisers to introduce new retirement options to provide you with more choice when you come to retire, alongside removing the historical inequality in GMP benefits.

The following options are planned to be available to members at retirement from early 2024:

  • Bridging pension option: This option allows you to opt for a larger Plan pension at retirement by exchanging part of your lifetime pension for a temporary pension payable until you reach your State Pension Age. The aim is to bridge the gap in your income until your State Pension becomes payable.
  • Pension Increase Exchange (PIE): This option offers you the choice of exchanging future increases on your pension for a one-off uplift.

We’ll be in touch with you with further information once these options are available.