Retirement pension

Guaranteed minimum pension

As a member of the council's pension scheme you were 'contracted out' of the State Second Pension Scheme (formerly known as the State Earnings Related Pension Scheme) and you paid lower national insurance contributions. There is an overriding guarantee that under no circumstances can your pension from the council's pension scheme be lower than the earnings related pension you would have got from the State scheme had you not been 'contracted out'. This is known as the guaranteed minimum pension.

At state retirement age, the Department of Work and Pensions will notify you and the council of the amount of your guaranteed minimum pension. This amount is included in the retirement pension stated in your notification letter. From state retirement age, some or all of the pensions increases on the guaranteed minimum pension element will be paid to you direct by the DWP, not by the council. The council, therefore, will pay pensions increases on your retirement pension minus the guaranteed minimum pension.

This does not apply if you're a married woman paying reduced rate national insurance contributions or if your service commenced after 6 April 1997

Page last updated: 13 March 2018