Draft regulations have been published relating to the amount by which contracted-out salary-related schemes must increase guaranteed minimum pensions (GMPs) from 6 April 2008. Section 109 of the Pension Schemes Act 1993 confers an element of inflation-proofing on GMPs, in that they must be increased by limited price indexation, capped at 3%.

The rate of inflation in the year to 30 September 2007 was 3.9% and the amount by which affected schemes must increase GMPs in the year from April 2008 will be fixed at 3%.

See The draft Guaranteed Minimum Pensions Increases Order 2008.