Pension changes
In February 2024, some members received a letter titled News about your Scheme pension where we outlined the proposed changes to your pension due to a review that is required by law. If you did not receive this communication, you can view this Here. You can find a link to the Q&A’s below.
The review relates to adjusting pension benefits for the effect of unequal Guaranteed Minimum Pension (GMP). As part of addressing this, we proposed to simplify pensions by converting all GMPs into a different form of pension.
The exercise has now paused. If you were not impacted by this then your pension will not change. If we discover at a later date that a member is impacted, they will receive communications with further information. No changes will be implemented to a member’s pension without us attempting to communicate with them first. It is important to keep your contact details up to date with the scheme administrators.
If you received a letter in September 2024 titled Pension changes: Confirming the impact on your pension or Your Pension option pack and you receive a pension from the Scheme then please select Pensioners from the drop down list under GMP Pension Changes.
The impact on your pension
In November 2024, some members received a letter titled Pension changes: confirming the impact on your pension to explain that we have completed the checks and calculations necessary. A benefit statement is included in this communication, which confirms the impact on your deferred pension in the Scheme as a result of addressing the historical inequality and simplifying pensions.
If you received a letter in November 2024, your new pension takes effect if you retire (or pass away) from early 2025. If you retire before the changes take effect, we will still need to address the GMP inequality and simplify your pension in line with our proposal, but this will happen at a later date
Please note:
- If you receive a retirement quotation pack from the administration team before the changes take effect, this will not reflect the proposed changes set out in your letter.
- Not all impacted members of the Scheme received a communication about pension changes in November 2024 and, as such, any changes in your pension are expected to take place at a later date.
Remember – the amount and overall value of your Scheme pension at your expected retirement age will not be reduced.
What you need to do
- If you received a letter titled Pension changes: confirming the impact on your pension, read your communication and benefit statement, this will confirm how your pension is affected.
- Your new pension will take effect automatically if you retire (or pass away) from early 2025. You do not need to do anything else.
- If you have any queries, contact Aptia (formerly Mercer), the Scheme administrator on 0370 850 0712 or email: FirstPensions.UK.GMPe@Mercer.com