The ITB Pension Funds have been contracted-out of the State Second Pension (S2P) since April 1978 (S2P replaced the State Earnings Related Pension Scheme – SERPS – in April 2002).  A Member with pensionable service between 6 April 1978 and 6 April 1997 must be provided with a pension by the Scheme that is at least equivalent to the pension the Member would have earned under S2P (or SERPS) if they had not been in contracted-out employment. 

This is called a Guaranteed Minimum Pension (GMP).  Pensioners to whom it applies will be advised of its value by the Department for Work & Pensions (DWP) as they approach their State Pension Age. This notification will refer to the GMP as COD, Contracted-Out Deductions. The Scheme is advised at the same time.

If you reached State Pension age before 6 April 2016 and you were working prior to 6 April 1997, the part of your pension increase related to GMP is paid within your State Pension.  The GMP is paid by the Scheme as part of the total pension but it will be deducted from the pension before the annual CPI increase is applied.

Married women who during their service paid reduced National Insurance contributions do not have entitlement to a GMP.