PENSIONERS AND DEPENDANTS

GMP EQUALISATION

Back in August 2024, the Group Trustee wrote to members who are affected by Guaranteed Minimum Pension (GMP) equalisation about some proposed changes. The changes are linked to the GMP part of your pension, and an ongoing project called ‘GMP equalisation’, which all pension schemes like the Group must carry out.

From early August to 4 October 2024, the Group Trustee ran a consultation with affected members about the planned changes. Having carefully considered all feedback received, the Group Trustee decided to proceed with the proposal.

What happens next?

The Group Trustee has now completed the necessary checks and calculations and written to those members included in the first stage of the exercise to confirm any changes to their pensions. Pension statements were issued in early February 2025. If this affects you and you receive a letter explaining that your pension is changing, your new pension will be paid from February 2025.

Some members’ benefits will be reviewed and calculated during the second stage of this exercise. We’ll write to those members nearer the time with a further update.

It might be the case that following the calculation exercise, you are identified as not having any GMP benefits, in which case the GMP issue doesn’t affect you and your Group pension won’t change - we’ll write to let you know.

If your pension does not include GMP and you did not receive a letter in February 2025, this information may not apply to you.

If you’d like to understand more about GMP equalisation and/or the changes to your pension, please see the materials below provided to members affected by GMP equalistion, in August 2024.

If you receive a statement and have any questions, please contact Railpen at enquiries@railpen.com or on 02476 472540.

Context information:

  • Read an overview of what’s happening.
  • Watch a short video which explains what’s happening.
  • Find answers to your questions.
  • Read a copy of the letter issued to affected members here and the Q&A provided with the letter, here.

GMP conversion is a complex piece of work that will take place in stages through 2025 continuing into 2026.

The Group Trustee has completed the necessary checks and calculations and written to those members included in the first stage of the exercise to confirm any changes to their pensions. Pension statements were issued in early February.

If this affects you and you receive a letter explaining that your pension is changing, your new pension will be paid from February 2025.

It might be the case that following the calculation exercise, you are identified as not having any GMP benefits, in which case the GMP issue doesn’t affect you and your Group pension won’t change. If this is the case, we’ll write to let you know.

You will continue to receive your current Group pension in the same way; your pension remains subject to an annual increase in April each year in the usual way, in accordance with the Scheme Rules.

Some members’ benefits will be reviewed and calculated during the second stage of this exercise. If this is the case for you, we’ll write to you nearer the time with a further update.

If your pension does not include GMP and you did not receive a letter in February 2025, this information may not apply to you.

If you receive a letter statement about GMP equalisation and have any questions, please contact Railpen at enquiries@railpen.com or on 02476 472540.

This is the timeline for the 2024-2025 GMP equalisation exercise.

    Early August 2024:
  • Letters issued to affected pensioner and dependant Group members explaining the proposal.
    Early August 2024:
  • Consultation on GMP proposal starts.
    4 October 2024:
  • Consultation ends.
    Mid-October 2024:
  • Following the outcome of the consultation, the Group Trustee decides to proceed with the proposal. The outcome is published on the Group website and a bulk email is issued to affected members.
    Early 2025:
  • Benefit statements are issued to affected pensioner and dependant members. This will show any change to your Group pension after addressing the historical GMP inequality.
  • Your new pension payments start.

If you have any questions about GMP equalisation, please contact Railpen in the usual way:

Email: enquiries@railpen.com
Phone: 02476 472540
Post: National Grid Electricity Group of the Electricity Supply Pension Scheme, Railpen, 2 Rye Hill Office Park, Birmingham Rd, Coventry CV5 9AB.

General queries

If you have a general query about the Group or your benefits, please get in touch with Railpen using the usual contact details: https://ngeg.nationalgridpensions.com/contact-us/

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