DWP consults on new rules for converting Guaranteed Minimum Pensions
UKPulse Money Desk
The Department for Work and Pensions (DWP) has launched a consultation on draft regulations concerning the conversion of Guaranteed Minimum Pensions (GMPs) into other scheme benefits.
- The DWP is seeking views on proposed draft regulations for converting Guaranteed Minimum Pensions (GMPs).
- The changes aim to assist formerly contracted-out occupational pension schemes in GMP conversion exercises.
- The regulations are intended to provide clarity for schemes fulfilling obligations to equalise pensions due to historic GMP rules.
The Department for Work and Pensions (DWP) has opened a consultation regarding proposed draft regulations for the conversion of Guaranteed Minimum Pensions (GMPs) into other pension scheme benefits. The consultation, launched today, 3 September 2026, seeks to gather views on these new rules.
The draft regulations are designed to support formerly contracted-out occupational pension schemes in undertaking GMP conversion exercises. A primary goal is to offer certainty regarding the process and steps schemes must follow, particularly those aiming to equalise pensions affected by historical GMP rules.
The DWP states that these draft regulations have been developed in close collaboration with the pensions industry. The consultation is aimed at a range of stakeholders, including trustees and managers of formerly contracted-out pension schemes, sponsoring employers, pension industry professionals, pension scheme members, and member representative organisations.
Why this matters: The proposed regulations aim to provide clarity and a structured process for pension schemes needing to convert GMPs, particularly for those addressing pension equalisation issues.
What this means for you: If you are a member of a formerly contracted-out pension scheme, these proposed changes could affect how your Guaranteed Minimum Pension (GMP) is managed and converted into other scheme benefits.