In previous versions of this guidance (i.e prior to the Cash equivalent guidance dated 12 May 2021), a GMP adjustment was applied to all cash equivalent calculations. This adjustment was to reflect the inflationary increases on a member's Guaranteed Minimum Pension (GMP), which have historically been the responsiblity of the State after GMP Payment Age.

However, following the requirement to equalise GMPs, as set out in our letter "GMP Equalisation: Calculations involving actuarial factors" dated 12 August 2019 and with effect from the date of the Cash equivalent guidance dated 12 May 2021, the 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 State Pension age (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 listed above, calculations should be undertaken using the methodology set out in this guidance but with any GMP (pre or post 1988) set to zero.

For the majority of affected calculations 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 increase the total transfer value.

No change should be made to existing methodology for members who reached State Pension age before 6 April 2016.