If any of your Tesco pension was built up before 6 April 1997, it's likely to include an element called the Guaranteed Minimum Pension (GMP).
If you have GMP, this part of your pension will increase at a different rate to the rest of your Tesco pension, once you reach GMP Payment Age (which is 60 for women and 65 for men).
- The rate of this increase is set by the Government each year
- Under Government rules, GMP built up before 6 April 1988 is treated differently to GMP built up from 6 April 1988
- In 2025, any GMP built up from 6 April 1988 will increase by 1.7% in line with price inflation, subject to a maximum of 3% each year. This is done automatically and is included as part of the overall pension increase applied by the Tesco Pension Scheme
- Any GMP built up before 1988 is not increased by the Tesco Pension Scheme. Depending on your circumstances, the Government may provide an increase as part of the increase to your basic State Pension.
Important notice:
You may have seen in the news that there’s been a recent High Court judgment relating to the Lloyds Banking Group pension schemes. This court judgment, which is about equal pensions for men and women, is expected to have an impact on many other pensions schemes, including our own.
It’s not yet clear exactly how this will affect the Scheme and the Trustee is currently working with our advisers to assess what the impact on the Scheme will be. Please note that nobody’s pension will be reduced as a result of this, but it’s expected that some people’s pensions may go up a small amount. This only effects any members who have GMP.
You don’t need to do anything. If your pension needs to be adjusted, we will contact you in due course.