Detail of outcome
The government is very grateful for the 31 responses it
received from private individuals, pension advisers, public
service pension schemes / scheme administrators, local
government bodies / pension funds, trade unions and other
representative organisations and private sector
organisations.
Having considered the responses, the government has decided
to discount conversion as a long-term policy solution and
make full GMP indexation the permanent solution for public
service pension schemes. This approach will mean that
public service pension schemes will be directed to provide
full indexation to those public servants with a GMP
reaching State Pension age beyond 5 April 2021.
Original consultation
Summary
Seeks views on how the government proposes to continue to meet
past commitments to public servants regarding the full indexation
of public service pensions, including any GMP element.
This consultation ran from
11am on 7 October 2020 to 11:45pm
on 30 December 2020
Consultation description
On 6 April 2016, the government introduced the new State
Pension (nSP). The reformed system simplified pension
provision but removed the mechanism that enabled those
public servants in ‘contracted-out’ employment between 1978
– 1997 to have their Guaranteed Minimum Pension (GMP) fully
price protected. An interim solution was introduced, which
was later consulted on and extended until 5 April 2021.
The government is today publishing a consultation on how it
proposes to ensure it continues to meet these past
commitments to public service employees regarding the full
indexation of public service pensions, including for any
related GMP element for members of public service pension
schemes. The consultation considers the policy options
available to the government.
Members of the public and interested bodies are invited to
respond to the consultation. The government will carefully
consider the responses before announcing a policy decision.
Documents
