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GMP

Royal Mail pension news and discussion.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser.
FAB
Posts: 234
Joined: 06 May 2017, 22:57
Gender: Male

GMP

Post by FAB »

When we were contracted out and had the GMP part. They say that although you may get a lower state pension this GMP will be worth the same or more than you might lose in the state pension. Apart from of course paying a lower NI contribution how could it improve your RM pension if that part is based on your final salary and number of years service? Or does it add more to that part of the pension. Never that clear on GMP!
RobertT
EX ROYAL MAIL
Posts: 6645
Joined: 09 Sep 2007, 14:26
Gender: Male

GMP

Post by RobertT »

The GMP forms part of your RM pension entitlement and represents the minimum amount that it has to pay out based on your pay and length of service.

As contracting out stopped in April 2016, we now pay more in NIC’s and so are building up more state pension than we would have done beforehand, potentially getting the full benefit from both.
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