The Department for Work and Pensions (DWP) has launched a consultation regarding the revaluation rate for Guaranteed Minimum Pensions (GMPs) for individuals who leave pensionable service early. The DWP is seeking views on the proposed continuation of a 3.25% per annum rate.
If confirmed following the consultation, this rate would be applied to contracted-out members who cease pensionable service in the period from 6 April 2027 to 5 April 2032.
The consultation is primarily aimed at pension administrators and employers sponsoring formerly contracted-out defined benefit occupational pension schemes. However, the government has also invited comments from pension industry professionals, pension schemes, trustees, pension scheme members, and member representative organisations.