History of the GMPF
Early Days

The Greater Manchester Pension Fund, which can trace its origins back to 1891, is one of the earliest schemes among local authorities providing retirement benefits for employees. In addition to this long history, it has introduced a number of features over the years that have been 'firsts' in local government service, and which are referred to later.

Superannuation and pension schemes developed largely in the last century, although there are references to certain arrangements for much earlier periods.

One very early case of pension provision in the public service arose because of the problem that faced Samuel Pepys in 1660, when he took over the job of Clerk of the Acts of the Navy Board and had to deal with his predecessor. Having successfully fought him off, because he showed some signs of trying to take on the job again, Pepys gave him as a pension 30% out of his own salary.

Another example of a very early scheme is that of the Scottish Ministers Widows Fund which was set up in 1743, when it was approved by the General Assembly of the Church of Scotland, and established by an Act of Parliament in 1744. It is interesting that this is perhaps the earliest known case of the use of actuarial methods, in that Colin MacLaurin, who was then Professor of Mathematics at the University of Edinburgh, carried out the calculations. The Fund, although subject to many variations since, is still in existence.

In the public sector prior consideration must be given to the Civil Servants Scheme, which in many ways provided the basis for other public sector schemes. The Civil Servants Scheme was introduced under the Superannuation Act 1834, which provided pensions on retirement at the age of 65, or earlier incapacity. The benefits were based on the average salary of the last three years of service, the pension being the full average salary after 50 years' service.

The Scheme was non-contributory and unfunded, but it became less generous with the passage of time and in 1859 the pension fraction became 1/60th of average salary for each year of service subject to a maximum proportion of 2/3rds.

A very important feature was introduced in the Superannuation Act 1909, when the pension fraction was reduced to 1/80th and a lump sum benefit on retirement was introduced on the basis of 1/30th for each year of service with a maximum of 45/30ths. A lump sum death benefit of one year's salary was also introduced on death in service, but not widows' annuities. It was not until 1949 that these were included. Local government superannuation has emerged on the basis of the Civil Servants Scheme.

Early Days continued...

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