A year has passed since the High Court's landmark judgment in the Lloyds case confirmed that pension schemes must equalise for the effect of guaranteed minimum pensions (GMPs). The Court gave some clarity as to how GMPs must be equalised, although many more questions remain unanswered.
Over the past year, the pension industry has been grappling with the practicalities of GMP equalisation. Industry guidance has recently been issued and further guidance is expected.
This note examines the current state of play and suggests steps which trustees should consider taking now. It covers:
To aid readers, Appendix I explains what a GMP is and why GMPs result in unequal benefits. Appendix II contains a reminder of the issues considered in the Lloyds case and the equalisation methods approved by the Court.
Click on the Download button to read the full briefing.
Authored by the pension team
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