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GMP Reconciliation

The State Pension Scheme changed to a single tier system from 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. 

*SERPS accrual ended on 5 April 2002 when it was replaced by the State Second Pension.

When contracting-out ended on 5 April 2016, 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) and enables a scheme to consider its data clean and entirely reliable. The data must be reconciled by December 2018. 

While we have not identified a need, at this stage, to make contact with scheme members to clarify information, we may need to make contact as we progress through the Project and receive responses from HMRC.  

GMP Latest News - 8 February 2018

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

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