Sainsburys GMP pension

[bergclimber34]

I worked at this place for 7 years as a first job, and had a pension there. Withdrew it years ago, not this letter about GMP equalisation comes from the blue.

Scam or honest? Any ideas.

[PistonHead007]

Likely genuine as GMP equalisation has taken a long time to implement across all schemes. If you want more validation you're going to have to share further details.

[Countdown]

It's genuine.

Our scheme only sorted it out last year. The calculations by the Actuaries took ages.

Even though you withdrew it, you might not have taken the full amount owed to you.

[bergclimber34]

I have so far seen a couple of companies sorting this.

The one I received a letter from is WTW?

Does this ring a bell with anyone.

I am concerned as to how they got my current address is all. Voting register I presume

[OddCat]

I had this after a transfer from a bank DB scheme in 2017.

In around 2023 I had a letter out of the blue telling me that the GMP equalisation meant that I was owed another £10k and that I could have it sent to where the transfer went or open a new Willis Towers Watson (WTW) stand alone DC pot. I went with the latter.

EDIT: I assume the bank scheme trustees gave WTW my address as they had engaged WTW to sort it out for them. I suppose it helps that I still live at the same address where I lived when I worked at the bank.

Edited by OddCat on Monday 11th May 21:19

[Zigster]

It’s likely kosher.

I work in this field (although, wisely in my view, have kept away from this specific topic). GMP equalisation is an absolute mess. It arguably should have been equalised 35 years ago (Barber judgment 17/05/1990) but was too tricky.

Unfortunately, a court case in 2018 ruled that GMPs had to be equalised and the last 8 years have involved a lot of pensions specialists spending an awful lot of time figuring out how to do it.

In theory, it applies to people who transferred out of their DB scheme as well but, in practice, most employers are being a bit slack about it. If you did take a transfer from a DB scheme operated by an old employer, it’s worth contacting the old pension scheme to check if they are including you in scope for potentially extra payment.

I worked for one of those major actuarial firms when I first graduated many years ago, and took a transfer when I moved on. I contacted them several years ago to ask for my “compo” but got an acknowledgment and nothing since then. Good reminder for me to follow up and find out where they’ve got to.

£10k seems a particularly large amount as a top-up. For most, I understand it will be a tiny fraction of that - perhaps a few hundred at most.

[Simpo Two]

I had to look it up:

'GMP (Guaranteed Minimum Pension) equalisation is the legal requirement for UK defined benefit pension schemes to adjust benefits earned between May 17, 1990, and April 5, 1997, ensuring men and women receive equal payments. It corrects inequalities stemming from different state pension ages and GMP accrual rates for men and women, often requiring top-up payments.'

So would it mean that the only people affected are men, or women? At that point my brain stopped working....

[lauda]

Simpo Two said:

I had to look it up:

'GMP (Guaranteed Minimum Pension) equalisation is the legal requirement for UK defined benefit pension schemes to adjust benefits earned between May 17, 1990, and April 5, 1997, ensuring men and women receive equal payments. It corrects inequalities stemming from different state pension ages and GMP accrual rates for men and women, often requiring top-up payments.'

So would it mean that the only people affected are men, or women? At that point my brain stopped working....

In theory, either can be impacted, depending on specific circumstances. But my understanding is that it's primarily men, as their state pension age was later.

[chip*]

bergclimber34 said:

I worked at this place for 7 years as a first job, and had a pension there. Withdrew it years ago, not this letter about GMP equalisation comes from the blue.

Scam or honest? Any ideas.

Your post prompted me to fire an email to WTW who also administer my old employer's pension.
WTW confirmed our scheme Trustee has determined the approach to equalisation, but the "relevant correction work is currently underway. This exercise is expected to take place over the next few years"!! Your Trustee is clearly far more active than mine