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DXC Pension Plan

WHAT IS A GMP?
GMP stands for 'Guaranteed Minimum Pension', which is an element of your pension built up between April 1978 and April 1997. This is the minimum amount of pension an employer had to provide through its pension scheme for any members of the Scheme that were contracted out of the State Earnings-Related Pension Scheme (SERPS) during this time.

Historically, men and women had different State Pension Ages, which meant that male and female pension scheme members may have earned different levels of GMP benefits. Following a High Court judgment in October 2018, UK pension schemes are now required to review any GMP benefits that their members earned between 17 May 1990 and 5 April 1997.

The Trustee of the Scheme has therefore carried out its three-step review:

Step 1 - GMP RECTIFICATION
Making sure the information held in relation to your GMP benefits is in line with that held by HMRC.

Step 2 - GMP EQUALISATION
Making sure the value of your GMP benefits is the same as if you were of the opposite sex.

Step 3 - GMP CONVERSION
Converting your GMP benefits to non-GMP benefits, removing any restrictions that GMP benefits hold.

The GMP review is now complete, as per the timeline below. You can rest assured that the value of your Scheme pension has not reduced as a result of this review. For more information, see the FAQ below, and refer to your Personal GMP Statement, that was sent to you by post in August 2021, for how your pension has been affected by this review.

30 JUNE 2021		31 August 2021		FEBRUARY 2022
Date of GMP Conversion All GMP benefits converted to non-GMP benefits		Outcome of GMP review sent to members Personal impact sent by post to members		New pension comes into payment Changes implemented and any any back payments due paid

30 JUNE 2021
Date of GMP Conversion All GMP benefits converted to non-GMP benefits

31 August 2021
Outcome of GMP review sent to members Personal impact sent by post to members

FEBRUARY 2022
New pension comes into payment Changes implemented and any any back payments due paid

The Process...

Both GMP Rectification and GMP Equalisation are required by law. GMP Conversion, although not required by law, is a Court approved method of finalising GMP Equalisation so inequality doesn't creep back in over time, and is being adopted by many pension schemes to simplify the administration. Before moving ahead with GMP Conversion, the Trustee wrote to you in February 2021 to give you the opportunity to ask any questions and provide your thoughts. After which it decided to move ahead with GMP Conversion, communicating this in June 2021, before completing the three-step process. If you have any questions, please email DXC.Pensions.Projects@mercer.com

Who to contact

If you have any questions or a queries related to the GMP review, then please contact us now and we’ll respond at the earliest opportunity.

FAQs

We're sure you'll have questions, so we've put together some commonly asked questions to give you more information on each step.

Frequently asked questions

CSC Computer Sciences Ltd 2005 Pension Section (Part of the DXC Pension Plan)

Take a look below for some common questions and answers that we have put together to help you understand the effects of the Trustee’s GMP review on your pension.

What is GMP Rectification?

In the simplest terms, GMP Rectification is comparing members’ GMP information held by the Scheme with that of HMRC to ensure that the information held by the Scheme is correct.

Why is GMP Rectification needed?

GMP Rectification is needed to ensure that Scheme members are receiving the correct amount of pension.

What could GMP Rectification mean for my pension?

GMP Rectification could show one of three outcomes:

Your GMP benefits are correct, and in line with HMRC - there is no change to your pension.
You have been underpaid - you will receive a one-off uplift to your pension and may also receive a one-off back payment.
You have been overpaid - the Trustee has decided not to reduce members’ pensions as a result of the GMP Rectification review; therefore, there is no change to your pension.

Could there be any tax implications?

Any back payment payable to a member to cover historic adjustments to their benefits will normally be subject to income tax. Members can ask HMRC to adjust their income tax position to reflect when they should have received these payments, by contacting their local tax office. However, the impact of any adjustment on how much tax is payable will depend on personal circumstances.

Where members are due to receive a higher monthly pension due to GMP Rectification, there could be tax implications. This will not be relevant for most members but, for example, it could push some over their pensions Lifetime Allowance (£1,073,100 for the 2021/22 tax year), which would mean they could incur tax charges.

If you are concerned about your individual tax position, you should contact HMRC by visiting: www.gov.uk/government/organisations/hm-revenue-customs/contact/pension-scheme-enquiries.

What is GMP Equalisation?

GMP Equalisation involves a calculation to compare the value of male and female GMP benefits. It is required by law.

The approach taken for each member is to identify whether the total value of his or her GMP benefits, earned between 17 May 1990 and 5 April 1997, is less than the total value that they would have been had they been of the opposite sex. A one-off uplift is then applied to any member whose benefits are currently lower.

Why is GMP Equalisation needed?

In some cases, members will see an immediate increase in their Scheme pension as a result of GMP Equalisation being applied. Members whose benefits increase as a result of GMP Equalisation will also receive a one-off back payment to cover historic adjustments to their benefits. If this is the case for you, it will be shown in your Personal GMP Statement.

Are all categories of GMP affected by Equalisation?

No, it is only necessary for UK-based workplace pension schemes to equalise GMP benefits earned between 17 May 1990 and 5 April 1997.

What could GMP Equalisation mean for my pension?

GMP Equalisation could show one of three outcomes:

You do not have any GMP benefits in the Equalisation window (17 May 1990 to 5 April 1997) - there is no change to your pension.
You have been underpaid - you will receive a one-off uplift to your pension and may also receive a one-off back payment. If it was found that you had been overpaid as part of the GMP Rectification review, any uplift due as result of GMP Equalisation would be reduced by that overpayment, resulting in a smaller, or no, uplift to your pension.
You have been overpaid - there is no change to your pension.

Could there be any tax implications?

Any back payment payable to a member to cover historic adjustments to their benefits will normally be subject to income tax. Members can ask HMRC to adjust their income tax position to reflect when they should have received these payments, by contacting their local tax office. However, the impact of any adjustment on how much tax is payable will depend on personal circumstances.

Where members are due to receive a higher monthly pension due to GMP Equalisation, there could be tax implications. This will not be relevant for most members but, for example, it could push some over their pensions Lifetime Allowance (£1,073,100 for the 2021/22 tax year), which would mean they could incur tax charges.

If you are concerned about your individual tax position, you should contact HMRC by visiting: www.gov.uk/government/organisations/hm-revenue-customs/contact/pension-scheme-enquiries.

What is GMP Conversion?

GMP Conversion involves converting any GMP benefits held by members of the Scheme (whether or not they have been affected by GMP Equalisation) into non-GMP Scheme benefits of the same value.

GMP Conversion is not required by law; however, the Trustee is carrying out GMP Conversion to simplify the administration of the Scheme.

What could GMP Conversion mean for my pension?

Following GMP Conversion, you will have no GMP benefits remaining in the Scheme. The impact of which (in particular how your benefits will increase in the future) can be seen in your Personal GMP Statement that was posted, to the address that you provided, in August 2021.