In a letter dated 14 November 2001 the DWP has given members of the Occupational Pension Schemes Joint Working Group the text of a draft amendment to the Contracting-out Regulations, confirming that the fixed rate of GMP revaluation for post-5.4.02 early leavers shall be 4.5% compound pa.
This had seemed to have been overlooked up to now. The GAD’s report to the Secretary of State on contracted-out rebates recommended a figure of 4.5%, and the Minister accepted this in his report to Parliament last March - promising "an amendment to the existing regulation will be introduced in due course."
The proposed amendment is intended to come into force on 6 April 2002, at the same time as a package of other amendments on which the Government consulted last July under the heading "Simplification of Contracting-out".