In previous versions of this guidance prior to 6 March 2020, a Guaranteed Minimum Pension (GMP) adjustment was applied to all cash equivalent calculations. This adjustment was to reflect the inflationary increases on a member's GMP, which have historically been the responsibility of the State after GMP Payment Age.

However, following the requirement to equalise GMPs, from 6 March 2020, GMP adjustment factors should no longer be applied in calculations for members who reach State Pension age (SPA) on or after 6 April 2016.

The cohorts of members who reach SPA on or after 6 April 2016 are:

• Males with a date of birth on or after 6 April 1951
• Females with a date of birth on or after 6 April 1953

For members with an accrued GMP in the cohorts listed above, calculations of cash equivalents of member benefits should be undertaken using the methodology set out in this guidance note but with any GMP (pre or post 1988) set to zero. (Debits to a member's GMP following a divorce still need to be determined, however.)

For the majority of calculations for these cohorts of members, the difference between the original and revised quotation is expected to be small, relative to the total transfer value. Not applying the GMP adjustment factors will slightly increase the total transfer value.

For members who reached SPA before 6 April 2016, GMP adjustment factors should be applied.