Government guidance on mitigating the effect of unequal GMP
Guidance developed by the government and an industry working group has been published.
The 10 step process follows last year’s landmark Lloyds judgment and provides trustees with a road map to mitigate the effect of unequal Guaranteed Minimum Pensions on pension income.
Judges in that case found the GMP system had historically operated unequally. The High Court ruling endorsed the government’s methodology for the complex process of restoring equality to GMP schemes.
There is no single method by which schemes can equalise benefits for the effect of GMPs. It is for the trustees of each scheme to decide the methodology that is most appropriate for their scheme.
Read the guidance on equalising pension for the effect of unequal Guaranteed Minimum Pensions.