Pension consultation
Your Scheme benefits and options: important updates and new support
The key points
- For information only
- the consultation has ended and we are proceeding with the proposed changes
- you do not need to do anything now
- more information coming soon on new retirement support from the Scheme
In October this year, you received a joint letter from the Trustee of the Wessex Water Pension Scheme (the ‘Scheme’) and Wessex Water Services Limited (the ‘Company’) explaining that we need to review the way your pension is calculated to address an inequality relating to Guaranteed Minimum Pension (‘GMP’) that is required by law.
In the letter and Questions and Answers document we sent you, we explained our proposed approach to comply with the law – called ‘GMP conversion’. This approach allows us to address GMP inequality in the Scheme going forwards and, in doing so, simplify Scheme pensions.
We consulted with all affected members on our proposal, giving you the opportunity to ask questions and provide any feedback.
The consultation ended on 4 November 2024. Thank you to all members who took the time to ask a question or provide feedback. Based on the feedback we received, we can confirm that e will be going ahead with our proposal as planned.
Please be assured your pension at retirement would not be reduced as a result of addressing the historic GMP inequality.
The impact to your benefits
What this means for you is that we will review your Scheme benefits when you retire (or transfer them out of the Scheme, if earlier) and address any historic GMP inequality at that point. Your retirement pack will confirm any resulting change to your benefits.
Imminent retirements
Following the end of the consultation and a confirmed approach to address the GMP inequality, we need to update our pension administration system to reflect the new calculations required. It will take some time to do so.
If you are intending to take your benefits from the Scheme in the near future, we may not be in a position address the GMP inequality at the point of your retirement. Do not worry. This does not prevent you from taking your benefits from the Scheme. In such instances, we will carry out a follow up calculation to check whether you are due an uplift to your pension and/or a backpayment to address the GMP inequality.
Contact point
If you have a query about anything in the letter, or about the Scheme or your benefits in general, contact the pensions team:
Ali Standerwick
Group pensions and benefits manager
01225 526117
Ryan Dorrington
Pensions support manager
01225 526609
Vicky Newman
Pensions and payroll administrator
01225 526122
Email: pensions@wessexwater.co.uk