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Document What is Guaranteed Minimum Pension?

From 6 April 1978 the state retirement pension was made up of two parts:

  • The basic pension – often referred to as the old age pension
  • The State Second Pension – previously known as the State Earnings Related Pension Scheme or SERPS

The basic pension is based on the members record of NI contributions and is paid by the Department of Work and Pensions (DWP). The State Second Pension (S2P) is based on the record of NI contributions together with the level of earnings as an employee. It may also be paid by DWP but public service pension schemes like the NHS Pension Scheme contract their membership out of the S2P and take on the responsibility for paying that pension. In return the member pays NI contributions at a lower rate than would normally apply.

As a contracted-out scheme we must ensure that for most scheme members, the occupational pension paid is at least the amount that would otherwise have been paid under the S2P for employment between 6 April 1978 and 5 April 1997. This minimum level of pension is called the Guaranteed Minimum Pension (GMP).

More information on GMP can be found on our website.

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