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GMP Reconciliation


The State Pension Scheme changed to a single tier system from 6 April 2016 and, from this date, the facility to 'contract out' of the State Earnings Related Pension Scheme (SERPS)/Second State Pensions (S2P) was removed by the Department of Work and Pensions (DWP) for all registered pension schemes.

When contracting-out ended HM Revenue and Customs (HMRC) no longer tracked contracted-out rights and issued data to schemes so they could compare their records against data held on scheme records. This included data from 6 April 1978 to 5 April 2016.

The comparison of data between HMRC and schemes is known as the GMP Reconciliation.

Between the periods of 6 April 1978 to 5 April 1997 the minimum level of benefit an occupational scheme had to provide was known as a Guaranteed Minimum Pension (or GMP). The GMP still forms a part of many members' benefits.

The GMP Reconciliation will ensure that scheme records (including GMP amounts and scheme start and end dates) agree with those of the National Insurance Contribution Office (NICO, part of HMRC).

HMRC closed their Scheme Reconciliation Service for pension scheme administrators in January 2019.  They plan to provide pension schemes with up to date reconciled member data in late April 2019.  Some pensions may need to change as a result of the reconciliation. Once we have verified HMRC's data and checked its impact on pensions we will write to affected members explaining how their pension will change. We expect to commence rectification of pensions from July 2019.

Further Information

Q&A: GMP overpayments arising from a scheme's reconciliation exercise

Link to Scottish Government Website