site logo
site logo

Jargon buster

  • Gainful employment

    This means paid employment for not less than 30 hours in each week for a period of not less than 12 months.
  • Guaranteed minimum pension (GMP)

    This is the minimum pension the LGPS must pay you if you were a member of the LGPS between 6 April 1978 and 5 April 1997.

    It's worked out using the amount of State Earnings Related Pension Scheme (SERPS) benefits you would have earned if you hadn't been part of the LGPS between these dates.

    Your GMP affects any yearly increases in your LGPS pension that we pay.

    We are responsible for paying full pensions increases on both pre and post 88 GMP for members who reach state pension age between 6 April 2016 and 6 April 2021.

    The position is as follows if you reached state pension age before 6 April 2016:

    • If you have any GMP relating to service on or before 5 April 1988, we do not increase that part of your LGPS pension: those yearly increases are paid through your state pension instead
    • If you have any GMP relating to service after 5 April 1988, we only increase that part of your LGPS pension up to a maximum of 3%: any increases above 3% are paid through your state pension
    • We increase any LGPS pension above your total GMP by the full pension increase

    For example, if the pension increase is 3.1%, you have an LGPS annual pension of £6,000, and the Department of Work and Pensions (DWP, formerly DSS) has notified you that you have a total annual GMP of £600 (split £500 pre 88 and £100 post 88), we increase your pension as follows:

    • We make no increase to your pre 88 GMP, so you will receive                                                                        £500
    • We increase your post 88 GMP by 3%, so you will receive:                             £100 * 1.03 =                            £103
    • We increase your non GMP pension by 3.1%, so you will receive: (£6000 - £500 -£100) *1.031 =                       £5567.40

    Your total new pension payable is:                                                                      £500 + £103 + £5567.40 =           £6170.40