Outcome of consultation on GMP equalisation and conversion for the Santander (UK) Group Pension Scheme (the Scheme)

In September 2021 we began consulting with Scheme members with Guaranteed Minimum Pension benefits (GMPs) on our proposals to address inequality with GMPs – a process called GMP equalisation and conversion.

The Trustee would like to thank everyone who responded to the consultation for their feedback and questions.

The Scheme Trustee has now considered all feedback received on the proposal to convert all GMP in the Scheme to non-GMP pension. The Trustee has decided to proceed with equalisation and conversion as proposed in the Guide and letter sent to affected members in September.

The Trustee has taken this decision because:

• By law we must address any sex-based inequality as a result of any GMP earned between 17 May 1990 and 5 April 1997.
• Conversion is a simple and straightforward way of addressing this inequality for the future.

We appreciate you may have been concerned by these proposals, but please bear in mind:

• Your current pension won’t be reduced as a result of GMP equalisation and conversion.
• Your converted pension will receive similar increases and treatment to your current Scheme pension, with future pension payments expected to be at least the same as now.

Next steps

We will be working through different sections of the Scheme and membership groups to ensure all calculations and adjustments are made in line with legal requirements. Once these calculations are complete, we’ll prepare personalised statements for affected members.

Due to the number and complexity of the required calculations, this will take a while, currently expected to be up to a year, to cover all affected members, starting in December 2021.

If you’re being paid a pension:

• Your statement will include details of any changes to the amount of pension you currently receive, how your pension will increase in the future compared to how it increases now, and details of any one-off payment you may receive to correct for past underpayments to your pension.
• We’ll also provide information to help you if any of the changes made to your pension may affect your personal tax circumstances.
• After this, you won’t receive any other communication from us on GMP equalisation and conversion.

If you’re a member whose pension hasn’t started to be paid:

• We’ll send you a personalised statement to confirm your future pension. For most members this will be in 2022.
• Your statement will show you how your Scheme benefits compare before and after GMP equalisation and conversion, including details of how your benefits will increase in the future compared to how they increase now.
• We’ll also provide information to help you if any of the changes made to your pension may affect your personal tax circumstances.
• After this, you won’t receive any other communication from us on GMP equalisation and conversion.

From Santander (UK) Group Pension Scheme Trustees Limited