GMP reconciliation

Published by Chris Tagg on

Our expert

  • Chris Tagg

    Chris Tagg


  • The option to contract-out of the State Second Pension (S2P) will come to an end in 2016 when the Single State Pension is introduced. Currently it is only possible to contract-out of S2P (previously SERPS) for schemes providing ‘defined benefits’ above a certain minimum level.

    Prior to April 1997 the minimum level of benefit the DB scheme had to provide was known as a Guaranteed Minimum Pension (or GMP), which still forms part of many members’ benefits. When contracting-out ends in April 2016, HM Revenue and Customs (HMRC) will no longer track contracted-out rights and will issue closure schedules to schemes so they can compare these against GMP amounts held on scheme records. This is known as a GMP reconciliation.

    Following this, from December 2018 HMRC is planning to send individuals information about their contracting-out history.

    Read more in our latest briefing note: