At present when your GMP comes into force, the National Insurance Contributions Office (NICO) tells NILGOSC the amount of your GMP. If you reached State Pension Age (SPA) before 6 April 2016 NILGOSC then adjusts its records to reflect the fact that the Government now pays some of the annual pensions increase on the GMP element of your Scheme pension along with your State Pension. Depending on whether you have pre-April 1988 GMP, post-April 1988 GMP or a mixture of both types of GMPs, the increases must be paid by either NILGOSC or the Government or a split between both NILGOSC and the Government. However, the overall increase in your total pension i.e. Scheme pension plus State Pension should be the annual pensions increase amount.
If you reached SPA after 6 April 2016 then NILGOSC will pay the full normal pensions increase on your pension even if you have a GMP component.
Every year NILGOSC will calculate the increase relating to your pension, however, we may have to do so before NICO has notified us of your GMP details. If this happens we may have to increase or reduce later pension payments to adjust for any overpayment or underpayment. We shall of course notify you in advance before doing so.