2.2.5 Health and Social Security Act 1984
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If a member leaves service and has a preserved pension under a
contracted out scheme, the GMP element has to be increased between
the date of leaving and retirement. Prior to this Act, most schemes
offset these increases as far as possible against the rest of the
member's preserved pension, thus minimising their effect. This procedure
was known as 'franking'.
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This Act introduced 'anti-franking' rules to prevent franking being
applied to new cases, but the legislation was not retrospective
for members who had already left prior to 1.1.85
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