Safeguarded Benefits

Safeguarded benefits give you a level of secure pension income after you retire. That income may be calculated in several different ways but is usually based on either your final salary or your contributions. It may also be a promised rate in which you’d have an option to convert what you’ve accumulated so far into income at some future time (usually when the member turns a certain age).

There are three types of safeguarded benefit:

• Guaranteed Minimum Pension (GMP): This is a set minimum pension that’s guaranteed for men over 65 and women over 60. GMP benefits cannot be drawn early unless certain conditions are met. Pensioners with a GMP build up their pension rights through an employer’s pension scheme. It replaces a portion of the State Pension.
• Guaranteed Annuity Rate (GAR): This offers defined benefits and a guaranteed minimum rate annuity when you retire.
• Defined Benefit (Final Salary): Your benefit is calculated according to your length of service and the salary you've earned at the time you leave that employer or retire.