delete The Guaranteed Minimum Pensions Increase Order 2024
The Guaranteed Minimum Pensions Increase Order 2024 sets the statutory increase percentage at 3% for guaranteed minimum pensions attributable to earnings factors under section 109(2)-(3) of the Pension Schemes Act 1993. It applies to England, Wales, and Scotland and comes into force on 6 April 2024.
This Order perpetuates a costly mandated benefit increase mechanism that adds to employer pension obligations, discourages defined benefit scheme provision, and imposes compliance burdens across the pension industry. While inflation protection for pensioners has merit, the statutory indexation of GMPs via primary legislation creates rigidity, increases labor costs, and contributes to the decline of occupational pensions—outcomes inconsistent with a dynamic, competitive pension market. The increase percentage (3%) compounds existing pension liabilities without corresponding productivity gains.