Guaranteed minimum pension (GMP) equalisation impact on individual transfer values.

Guaranteed Minimum Pension (GMP) was founded in April 1978, and it is minimum pension paid when member reached age 65 for male and age 60 for female. Prior to year 1978, the overall payment of the state pension is covered by the government of United Kingdom (UK) but after that period, private pension schemes were given the authorization to supplement part of the pension. The main purpose of GMP is to reconstruct State Earnings Related Pension (SERPS) and ensuring employee that is excluded of SERPS between period, April 6, 1978 and April 5, 1997 to obtain their deserved pension. There are several factors to be taken into consideration to produce the GMP values such as gender, Date of Birth (DOB), Date of Joining scheme (DOJ), Date of Leaving (DOL), Normal Retirement Date (NRD), Normal Retirement Age (NRA) and whether there is Transfer-In (TV in) during the period of GMP. The GMP age varies for respective gender including the rate used and this leads to the inequalisation of pension values despite the same amount of jobs. Therefore, GMP equalisation was founded to equalise the amount of pension obtained by both genders.