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Adjusted Pensions following GMP reconciliation

GC 874 item 2 and the General Secretary’s report in the Spring Edition of the Pensioner magazine gave details of the reconciliation exercise on Guaranteed Minimum Pension (GMP) being carried out by the Cabinet Office. The GS, HQA and Secretary Administration attended a meeting with the Cabinet Office in early December where we received an update on progress. The Cabinet Office expect to write off around £20 million in overpayments already made, compared to between £200,000 - £250,000 in arrears, where pensions have been underpaid.

Those Civil Service Pensions affected will have future payments adjusted to ensure that they are correct going forwards. Plans are afoot to write to those members affected, commencing in February with the first adjustments to pensions paid from March. There will be no changes to the amount of pension paid until a letter has been received explaining the recalculation and reasons for the change. The Cabinet Office has analysed a large sample of cases and is confident that reductions will be modest-for 80% of members affected it will be less than a £5 per week reduction. However, a few cases will be subject to a larger adjustment, but this is not expected to be more than £14 per week.

The Alliance has been working closely with the Cabinet Office on this issue. Whilst we are content with their decision to write off overpayments to date, we have also highlighted that some of our members, those on lower pensions, and especially women affected by the change in State Pension Age, will feel the impact of even a small adjustment. Cabinet Office has undertaken to ensure that information on appropriate sources of support are also included in the letters sent to those affected. However, if any member requires further assistance please contact Alliance HQ on 0208 688 8418.