I was in a company pension scheme from 1978 to 1988; it was contracted out of SERPS. On leaving the company I purchase a insurance based pension with Sun Life, the company's provider. This was called a "Flexible T Plan" and consisted of two investments; one provided a GMP and the other a sum to purchase a pension on retirement. (Sun Life has become Friends Life.) I am now almost at retirement age and have received the documentation all of which appears to be as I would expect but I have one query. The GMP element has been inflated by 8.5% between leaving the company and retirement as expected and the GMP is as promised back in 1988. The informaton states that GMP is not inflated post retirement; is this correct? I would expect increases to be inline with a SERPs based pension.

Hi reneh46,

It sounds like you have a Section 32 Buyout policy, which it appears to be if it is paying you a revalued Guaranteed Minimum Pension.

Any GMP which you earned before 6th April 1988 will recieve increases but these will be paid by the State. So you will receive future increases on this prt of your pension after State Pension Age which reflect increases in inflation.

Friends Life will be able to confirm this if you have any doubt.

Hope this helps?

Mike Jones

MyCompanyPension.co.uk