PREMIER TRANSFER PLAN (SECTION 32)
S32 - FREQUENTLY ASKED QUESTIONS
What is GMP Revaluation?
GMP is increased between leaving the scheme and State Pension Age. There are three ways of revaluing GMP. The Scheme chooses the rate and the rate is confirmed in the Scheme Rules.
On transfer to a S32, the GMP, including the revaluation, has to be guaranteed.
Limited Rate Revaluation
This is not available to leavers after 5 April 1997. The GMP is revalued each year by RPI up to a maximum of 5%. The Scheme pays a Limited Revaluation Premium to the DSS, who then take responsibility for any additional revaluation needed if RPI is greater than 5%. (The Limited Revaluation Premium will be refunded on later transfer to a personal pension plan.)
Fixed Rate Revaluation
GMP is increased at a fixed rate depending on when the member left the scheme:
GMP is increased in line with the National Average Earnings Index under S148 Orders (previously called S21 Orders). The rate is announced by Parliament each year.
* We will not accept benefits where S148 Revaluation applies. Trustees of some schemes which offer S148 Revaluation may change it to Fixed Rate to allow the transfer to proceed.