Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Anti-franking definition

What does Anti-franking mean? In practice, anti-franking describes the statutory rules that prevent an occupational pension scheme from using a member’s “excess” pension (benefits over the guaranteed minimum pension, or GMP) to meet the statutory revaluation or increases due on the GMP. The required GMP uplift—such as revaluation between leaving contracted-out employment and reaching GMP/state pension age—must be provided in addition to, and not by eroding, other scheme benefits. The concept is established by legislation rather than case law: principally the Pension Schemes Act 1993 and associated contracting-out regulations (with parallel provisions in Northern Ireland). Although contracting-out was abolished from 6 April 2016,...

Anti-franking under PSA 1993 ss 87–92: GMP revaluation and protection of excess, relevant aggregate, spouse/civil partner benefits, and pre- and post-2016 contracting-out rules

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Practice notes

The concept

Historically, under contracted-out salary-related (COSR) schemes, a deferred member’s guaranteed minimum pension (GMP) could be uprated with no rise in the overall deferred pension. This was achieved by cutting the element above the GMP so that the total stayed unchanged, in effect using the excess to fund the GMP revaluation. That practice is termed ‘franking’; ‘anti-franking’ describes the statutory bar on it, which requires a floor of benefit—the ‘relevant aggregate’—for members, and for their spouses and civil partners, at GMP age. Consequently, schemes must preserve the pension above GMP and raise the member’s total pension, rather than trimming the excess. At GMP age, schemes must meet the relevant aggregate for members, spouses and civil partners by safeguarding the excess and increasing totals...

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Peter White

Before qualifying in 2006 Peter worked for many years as a senior manager in Prudential's IFA distribution channel which included responsibility for the technical, administrative and regulatory aspects of Prudential's pensions products in the teams which he led. He was responsible for several successful high profile national projects. Now recognised by Chambers, he advises trustees and employers on a wide range of defined benefit and defined contribution pension related issues. Peter is a former chairman of the North West NAPF and is a member of the Association of Pension Lawyers (APL). Peter is a former chairman and non executive director of Northern Film Network (a not for profit organisation aimed at attracting people to the film industry). He is a keen mountain biker, classical guitarist and cook and lives with his family in Bolton. ...

Web page updated on 21/05/2026

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