(This archived guidance relates to HMRC discretionary
practice before the 6th April 2006. For current guidance on
Registered Pension Schemes see the Registered Pension Schemes
Manual)
[PN7.18-19]
The Social Security Pensions Act 1975 sets down special
requirements for schemes which contract-out of the earnings related
part of the State Scheme. Occupational schemes must guarantee that
benefits will not fall below a certain minimum, known as the
Guaranteed Minimum Pension (GMP) or Protected Rights (see
PSI6.1.10-11). The
requirements are complex but, because the legislation is concerned
to secure a minimum level of benefit which is below our maximum,
the requirements affect us only to a limited extent.
