Consultation outcome

Public Service Pensions: Guaranteed Minimum Pension Indexation consultation

• From: HM Treasury
• Published: 7 October 2020
• Last updated: 23 March 2021 — See all updates

This was published under the 2019 to 2022 Johnson Conservative government

This consultation has concluded

Read the full outcome

Guaranteed Minimum Pension indexation consultation outcome

Ref: ISBN 978-1-911680-71-0, 3109

PDF, 322 KB, 32 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email digital.communications@hmtreasury.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Detail of outcome

The government is very grateful for the 31 responses it received from private individuals, pension advisers, public service pension schemes / scheme administrators, local government bodies / pension funds, trade unions and other representative organisations and private sector organisations.

Having considered the responses, the government has decided to discount conversion as a long-term policy solution and make full GMP indexation the permanent solution for public service pension schemes. This approach will mean that public service pension schemes will be directed to provide full indexation to those public servants with a GMP reaching State Pension age beyond 5 April 2021.

---

Original consultation

Summary

Seeks views on how the government proposes to continue to meet past commitments to public servants regarding the full indexation of public service pensions, including any GMP element.

This consultation ran from
11am on 7 October 2020 to 11:45pm on 30 December 2020

Consultation description

On 6 April 2016, the government introduced the new State Pension (nSP). The reformed system simplified pension provision but removed the mechanism that enabled those public servants in ‘contracted-out’ employment between 1978 – 1997 to have their Guaranteed Minimum Pension (GMP) fully price protected. An interim solution was introduced, which was later consulted on and extended until 5 April 2021.

The government is today publishing a consultation on how it proposes to ensure it continues to meet these past commitments to public service employees regarding the full indexation of public service pensions, including for any related GMP element for members of public service pension schemes. The consultation considers the policy options available to the government.

Members of the public and interested bodies are invited to respond to the consultation. The government will carefully consider the responses before announcing a policy decision.

Documents

Public Service Pensions: GMP indexation consultation: Proposal to extend full indexation

PDF, 431 KB, 37 pages

Published 7 October 2020
Last updated 23 March 2021 + show all updates

1. 23 March 2021

   Response to consultation published

2. 7 October 2020

   First published.