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UK government cuts final salary GMP guarantee

Thousands of Final Salary Pension members will lose out under the new Flat rate UK State pension which comes in April 2016.
In short anyone with a pre-1988 guaranteed minimum pension (GMP) component in their private final salary scheme pension is effected. Under previous rules in agreement for contracting out of the State pension (into a final salary pension) the UK government agreed to inflation proof the benefits off the contracting out. Now the UK Government are absorbing the benefits into the new state pension they are removing the inflation proofing that they guaranteed. This will dramatically reduce the level of pension that people will be entitled to in the future.
This new legislation will affect anyone who has paid into a Final Salary scheme during the Eighties and Nineties, and who now faces the loss of inflation proofing of a large part of their pension.
Unfortunately some of the worst hit are members of unfunded public sector pension schemes, like the Teachers Pension, which can no longer transfer to a QROPS following UK Government rule changes in April 2015. This has effectively given the UK Government free reign to do as it wishes to members’ benefits in these schemes. The average loss for a members of the Teachers Pension could be as much as £30,000.
This will also affect private-sector workers as much as those in the public sector. If this is taken into account when undertaking a QROPS transfer comparison, many more people may find that a QROPS transfer is in their interest.

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very stress free

Thank you Cambel for your help and guidance throughout this process in getting my pension transferred (very stress free for me). It is greatly appreciated and I would certainly recommend you and Charter Square to others who are interested in transferring their pension.

David R, New Zealand

You guys rock!

I just wanted to say a great big thank you to you and your team. You are all totally awesome. I received a cheque yesterday from the Prudential to apologise for the ‘recent inconvenience’ that I had experienced. Thank you for doing this for me. You guys rock!

Noelle B, New Zealand

professional, insightful

Charter Square were professional, insightful and a pleasure to work with. They rose to the challenge of consolidating my overseas pensions and bringing them home with minimum fuss for me and maximum effort on their part.

Jens H, New Zealand

thorough, professional and prompt

Very thorough, professional and prompt service from the team at Charter Square. Thanks for making the bewildering world of pension transfers super simple.

Jules T, New Zealand

Best party to deal with

Thank you kindly for keeping in touch with me. For now, I will not be moving my pension. I will however be keeping your details and referring back to you when I wish to pursue. You by far are the best party to deal with, no nonsense, professional and in my opinion genuine. I do sincerely thank you for your advice to date.

GE, New Zealand


Securing the freedom to use savings that are actually ours to work with has been stressful in the extreme. While I never planned on giving up there were many times when the current (UK) holder made the whole process seem well beyond my determination and ability. It’s easy to look at the 36 month history of this claim with the benefit of hindsight, but the conclusion is that employing Charter Square in the first instance would have been wise had I been able to anticipate the red-tape that appears to have been deliberately created to stall access.

CP, Auckland
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