- Tuesday, 18 September 2012
NFOP is appalled by the decision to discriminate against women in a bid to save the Treasury money.
Steve Webb, Pensions Minister, has confirmed that the Guaranteed Minimum Pension (GMP) age for women has not increased in line with the State Pension age.
Women with a contracted out final salary pension will now receive smaller pensions than men of the same age but with similar work patterns.
Roger Turner, General Secretary of the National Federation of Occupational Pensioners (NFOP), said that this represents a big and increasing saving to the Treasury.
By the time the State Pension Age for women reaches 65, some women will have waited up to five years without indexation on the GMP part of their pension, whilst men are unaffected.
Mr Turner wrote to the Pensions Minister to ask if women would receive the increases they have missed out on under current legislation, backdated to the GMP age.
In the letter of response, Steve Webb said: “The Government has no plans to provide indexation to the pre-1988 element of the GMP for the period between GMP age and State Pension age, nor to impose extra costs on private pension schemes by requiring them to provide an extra element of indexation, that is, in respect of the pre-88 element and any increase on the post-88 element in excess of the three per cent…”
Mr Turner said: “The GMP element must be revalued for each complete tax year between the date of leaving the scheme and age 60 for women and age 65 for men. So why is it no longer to be revalued for women after the age of 60 yet the revaluation continues for men until the age of 65?
“This is blatant age and sex discrimination and a cruel blow to women who are now, not only waiting longer to get the State Pension and paying more in National Insurance, but also getting no indexation on part of their pension which would normally be paid by the Government.
“There will be many women for whom the GMP represents a large part of their pension and they will suffer as a result, particularly if inflation begins to rise.
“Steve Webb must re-visit this issue urgently to rectify this appalling and penny-pinching decision.”
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