Therefore although women’s GMP payment age will remain at 60 the AFPS must fully inflation proof their GMP to SPA, and adjust their annual rate of AFPS pension to exclude the GMP increases paid by the state from SPA.
GMP may be in two parts, for the period 5 April 1978 to the date you left the Armed Forces (or 5 April 1988 whichever is the earlier) and for the period 6 April 1988 until you left the service (or 5 April 1997 whichever is the earlier). XP will apply any increase to the part of your GMP that was earned after 5 April 1988 and pay this with your Armed Forces Pension, but only up to a maximum of 3%. Any increase above 3% and all of any increase on the GMP amount earned before 6 April 1988 is paid by DWP with your state benefits. However, a further change in the law (Pensions Act 1995) means that XP will pay any increase in full on all the benefits earned after 5 April 1997.
Aah, now I understand . . . I'm really glad someone sorted it out and gave us the simple version. Makes perfect sense now . . . (in a pig's ear).
No wonder there are so many people that don't receive all their benefits (even the one's they've earned).