Guaranteed Minimum Pension (GMP)

Before 6 April 2016, the Fund was 'contracted out' which means that you and Unilever paid lower National Insurance, and the Fund must meet certain requirements relating to the second level of State pension (S2P – previously known as SERPS).

Between 6 April 1978 and 5 April 1997, the Fund needed to provide a replacement benefit called the GMP. If you were building up benefits in the Fund between those dates, your pension will include some GMP. The GMP receives increases each year in line with current pension law, while any pension you have on top of your GMP receives the Fund increases shown in the ‘Pension increases’ section of this website.

Increases to your Guaranteed Minimum Pension:

Once you reach your 'GMP age' – which is 65 for men and 60 for women – the GMP part of your pension receives different increases. This means that, if your pension includes any GMP in payment, its overall increase will be different to the yearly rate shown in the 'Pension increases' section of the website. If you are the husband, wife or civil partner of a member and you’re receiving a pension with GMP, this different increase will apply whatever your age.

The Fund applies increases to any GMP you built up from 6 April 1988, in line with inflation (as measured on the Consumer Prices Index), up to 3% a year. Please note: This is a different measure of inflation set by the Government and is not the one the Fund uses. We have called it 'GMP inflation'. In 2020 GMP inflation is 1.7%.

Historically, from your State Pension Age, the State has also:

If you reached your State pension age before 6 April
– the State will continue paying these extra increases as it does now, as part of your State pension.

If you reached your State pension age on or after 6 April 2016, however, you may be aware that the State pension arrangements underwent major changes in April 2016 which may affect you. One outcome of this is that the State will no longer pay these extra increases – so they will not apply to your GMP. This is just one of a range of changes to the State pension – in particular, you will receive the State pension as a single amount (instead of the two-part Basic State Pension and State Second Pension). However, this is a UK Government change to State benefits and there is no change to the Fund rules. The Fund will continue applying the same increase – GMP inflation up to 3% a year – on the GMP you built up from 6 April 1988 onwards.