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Greater Manchester Pension Fund: A Comprehensive Guide

Welcome to our comprehensive guide on the Greater Manchester Pension Fund! Are you ready to take control of your retirement and secure a prosperous future? Look no further as we dive into all the essential details about this pension fund specifically designed for individuals in Greater Manchester. Whether you’re just starting your career or nearing retirement, understanding how this fund works and the benefits it offers is crucial in today’s financial landscape.

So, let’s explore everything you need to know about the Greater Manchester Pension Fund and discover how it can pave the way for an exceptional retirement journey. Let’s get started!

Greater Manchester Pension Fund

Greater Manchester Pension Fund

The Greater Manchester Pension Fund (GMPF) stands as the largest local government pension fund in the United Kingdom, boasting a membership of over 414,000 individuals. This significant entity provides essential pension and benefit services to both current and former employees of local authorities, schools, and various other public sector organizations within the Greater Manchester region.

Operating on the premise of a career average pension scheme, GMPF calculates its members’ pensions based on their average earnings spanning their entire careers. As members begin contributing, they immediately start building up their pensions. Additionally, the fund offers various benefits, including life cover, ill health protection, and redundancy protection, ensuring comprehensive coverage for its members.

How Does the Greater Manchester Pension Fund Work?

The Greater Manchester Pension Fund (GMPF) operates as a career average pension scheme, wherein members’ pensions are determined based on their average earnings throughout their entire careers. As soon as members start contributing, they begin building their pension, accompanied by additional benefits like life cover, ill health protection, and redundancy protection.

Members have the flexibility to retire from GMPF at 55, with the option to receive a larger pension by retiring later. There is also a provision for flexible retirement, enabling members to draw a pension while continuing to work.

  • Contributions: Both members and their employers make contributions to GMPF, with the amount being a percentage of the member’s earnings.
  • Investment: GMPF invests these contributions in a diverse portfolio, including assets like infrastructure, real estate, and equities, aiming to generate returns for the fund.
  • Benefits: Upon retirement, members receive a pension based on their career average earnings and the duration of their membership in GMPF. Additionally, members are entitled to various benefits such as life cover, ill health protection, and redundancy protection.

Crucially, GMPF operates as a funded pension scheme, ensuring it has adequate reserves to cover its members’ pensions. This differs from unfunded pension schemes, which rely on future contributions to pay current pensions.

Management: GMPF is governed by a board of trustees composed of representatives from both members and employers. This board is responsible for setting policies and ensuring the fund’s responsible and sound management.

Types of Greater Manchester Pension Fund

Types of Greater Manchester Pension Fund

The Greater Manchester Pension Fund (GMPF) offers various pension schemes to its members, catering to different needs and preferences.

  • Career Average Revalued Earnings (CARE) Scheme: This is the default option for most GMPF members. Under CARE, pensions are calculated based on the average earnings throughout one’s career, adjusted annually according to inflation rates.
  • Final Salary Scheme (Defined Benefit): Although closed to new members, existing ones can continue contributing to this plan. The final Salary scheme calculates the pension based on the final year’s earnings, multiplied by the years of service and a pension factor.
  • CARE Scheme Options: Under CARE, members have two choices:
  • Core (50/50) Option: Members contribute 6% of their earnings, and employers contribute 19%. The pension received is 50% of the average career earnings, annually adjusted for inflation.
  • Plus (75/75) Option: Members contribute 7.5% of their earnings, with employers contributing 22.5%. The pension received is 75% of the average career earnings, revalued each year to account for inflation.

Switching between the Core and Plus options is allowed at any time, offering flexibility to members.

Special Schemes: Apart from the main GMPF schemes, there are specific pension schemes tailored for different professions in Greater Manchester:

1. Teachers’ Pension Scheme (TPS)

  1. Police Pension Scheme (PPS)
  • Tailored for police officers in Greater Manchester
  • A distinct scheme from GMPF, yet administered by GMPF
  1. Firefighters’ Pension Scheme (FPS)
  • Specifically crafted  Pesnion for firefighters employed in Greater Manchester
  • Operates as a separate scheme from GMPF but is managed by GMPF

If anyone is uncertain about their specific GMPF scheme, it is advisable to contact their employer or the GMPF directly for accurate information. These diverse options ensure that members can choose a plan that aligns with their career, financial goals, and individual circumstances.

How is Greater Manchester Pension Fund Securing Retirement?

Greater Manchester Pension Fund

Greater Manchester Pension Fund (GMPF) stands as a beacon of financial security, ensuring a stable retirement for its members through a series of prudent strategies. Their commitment to securing retirement can be seen through their astute financial practices:

  • Diversified Asset Investment: GMPF wisely invests its members’ contributions in a diverse portfolio, including infrastructure, real estate, and equities. This diversified approach mitigates risks, guaranteeing that the fund has the resources to fulfil its future pension obligations.
  • Careful Liability Management: GMPF employs sophisticated tools like hedging and asset allocation to manage its liabilities effectively. These measures are pivotal in ensuring that the fund can meet its commitments to members in the years to come.
  • Cost-Efficiency: GMPF operates with a low-cost structure, a testament to its commitment to maximizing returns for its members. By keeping operational costs in check, they ensure that a substantial portion of the fund’s earnings goes directly into securing robust pensions.
  • Strong Governance: The fund’s governance structure, overseen by a board of trustees comprising member and employer representatives, underscores their commitment to responsible management. This governance ensures that the fund’s policies are sound and operations are conducted with integrity.

But GMPF’s dedication to its members extends beyond these financial measures. They actively support their members by offering comprehensive retirement planning advice empowering individuals to make well-informed decisions about their future. Additionally, GMPF collaborates with external organizations to promote financial well-being, offering access to vital services like financial advice and debt counselling.

Greater Manchester Pension Fund Contributions and Investment

The Greater Manchester Pension Fund (GMPF) operates as a defined benefit pension scheme, where the pension amount received by its members is determined based on their earnings and years of service. Both members and employers contribute to the fund, with these contributions being invested to generate returns that will ultimately fund members’ pensions in the future.


  • Members of the GMPF contribute 6% of their earnings towards their pension.
  • Employers are responsible for contributing 19% of their employees’ earnings to the fund.

Additionally, members have the option to make Additional Voluntary Contributions (AVCs) to enhance their pension savings and, subsequently, increase their retirement benefits.


The GMPF employs a diverse investment strategy, allocating its members’ contributions into various asset classes, including:

  • Public equity: Investments in shares of various companies
  • Bonds: Loans extended to governments and corporations
  • Cash: Deposits in banks and other financial institutions
  • Property: A diverse portfolio comprising commercial and residential properties
  • Alternative assets: This includes investments in infrastructure, private equity, and hedge funds.

The investment strategy of the GMPF is meticulously designed to secure long-term returns, which will be instrumental in ensuring the fund’s ability to meet its pension obligations in the future. Notably, the GMPF emphasizes responsible and sustainable investment practices as part of its strategy.


The GMPF has demonstrated robust performance in recent years, reflecting its commitment to delivering on its pension promises. For instance, in the fiscal year ending on March 31, 2022, the fund achieved a net return of 10.1%. This signifies that the overall value of the fund’s investments increased by 10.1% during that year.

The strong performance of the GMPF can be attributed to several key factors, including:

  • A well-diversified investment portfolio that helps spread risk.
  • A focused approach to generating long-term returns, aligning with the fund’s objective of funding future pensions.
  • A commitment to responsible and sustainable investment practices, ensuring that the fund’s investments are not only financially rewarding but also socially and environmentally conscious.

How to Join Greater Manchester Pension Fund?

How to Join Greater Manchester Pension Fund

Joining the Greater Manchester Pension Fund (GMPF) is a straightforward process if a participating employer employs you. Participating employers in Greater Manchester typically include local authorities, schools, and other public sector organizations.

To become a member of GMPF, follow these steps:

  • Employment with a Participating Employer: First and foremost, you need to be employed by a participating employer in Greater Manchester. If you meet this criterion, you are eligible for GMPF membership.
  • Automatic Enrollment: In most cases, if you are eligible, you will be automatically enrolled in the GMPF. Your employer will set up your enrollment, and contributions will begin unless you choose to opt-out. Opting out is possible but generally not recommended, as GMPF offers valuable retirement benefits.
  • Membership Form: To formalize your GMPF membership, you will need to complete a membership form. You can obtain this form from your employer or download it from the GMPF website.
  • Submission: Once you’ve filled out the membership form accurately and completely, return it to your employer. Your employer will then forward the form to the Greater Manchester Pension Fund on your behalf.
  • Membership Activation: After GMPF receives your membership form, you will officially become a member of the pension scheme. Your pension contributions will start accumulating from your start date.

If you have any doubts about your eligibility to join the GMPF or need further assistance, do not hesitate to reach out to your employer or directly contact the GMPF.

Once you’re a member, you can enjoy several benefits, including:

  • A guaranteed pension upon retirement
  • Life cover and protection in case of ill health
  • The option to make additional voluntary contributions (AVCs) to enhance your pension savings
  • Access to financial planning advice and support to ensure your financial well-being


In conclusion, the Greater Manchester Pension Fund offers a wide range of benefits and services for its members. From comprehensive pension plans to flexible investment options, this fund prioritizes the financial security of its members. Whether you are an employee or employer in the Greater Manchester area, it is worth considering joining this well-managed pension fund to secure your future retirement goals. With its strong track record and commitment to ethical investments, the Greater Manchester Pension Fund stands out as a reliable option for individuals looking towards a financially stable future.

FAQ – Greater Manchester Pension Fund

FAQ - Greater Manchester Pension Fund

What is the lump sum for GMPF?

As per the guidelines, individuals under the GMPF scheme can avail of a tax-free lump sum equivalent to 25 per cent of the capital value of their pension benefits. However, there is a caveat: if this calculated value exceeds the individual’s remaining lifetime allowance, the lump sum would be capped at 25 per cent of the remaining lifetime allowance.

In simpler terms, this regulation ensures that individuals can enjoy a portion of their pension benefits as a lump sum without incurring tax liabilities. The specific amount, however, is contingent upon the total value of one’s pension benefits and the remaining lifetime allowance, providing a balanced approach to pension fund withdrawals.

What type of pension is Greater Manchester Pension Fund?

The Greater Manchester Pension Fund (GMPF) is a defined benefit pension scheme that provides retirement benefits for employees of the local government in Greater Manchester. This means that members of GMPF are guaranteed a specific income in retirement based on their final salary and length of service.

Being a defined benefit pension scheme, GMPF offers its members security and peace of mind when it comes to planning for their future. Unlike other types of pensions, which depend on investment returns or contributions made by individuals, GMPF ensures that members receive a fixed amount upon retirement.

How do I contact the Greater Manchester Pension Fund?

If you are looking to get in touch with the Greater Manchester Pension Fund, there is a convenient way to do so. Interested individuals can reach out to their dedicated Customer Services team by dialling 0161 301 7000. Whether you prefer an online consultation or an in-person meeting, the team can assist you in booking an appointment to discuss your pension. Don’t hesitate to give them a call and take a step towards securing your financial future.

When can I take my GMPF pension?

The earliest one can take their GMPF pension is at the age of 55. If an individual decides to retire before their normal pension age (NPA), early retirement reductions will usually apply to their benefits.


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