Guaranteed minimum pension slip to be corrected

Staff who want to take a pension under a guaranteed minimum pension (GMP) scheme as a lump sum will have to wait until April.

Last month’s changes to the trivial commutation regulations allow staff aged 60 to 75 to take pensions of less than £2,000 as a lump sum. But the wording of the draft consultation did not allow for plans to commute GMPs.

The GMP is the minimum pension an occupational plan has to provide for staff who contracted out of the State Earnings-Related Pension Scheme between 6 April 1978 and 5 April 1997. The rules will be amended.