On the go: Guy Opperman has called on pension schemes to take immediate action to equalise guaranteed minimum pension payments.
The pensions minister called out schemes saying they should take action now to equalise GMP, given the availability of guidance on the matter published in April and methodology guidance just last month.
He said: “It’s been six months since we published our guidance, and it is time for pension schemes to act to equalise GMP payments.
“People need certainty and clarity when it comes to their retirement income.”
He continued: “Companies should be taking steps towards equalisation such as correcting records and deciding upon a preferred methodology.”
In April, Mr Opperman warned that pension schemes should begin the process of equalising pensions for the effect of inequalities caused by GMPs, following a High Court ruling in October 2018 that provided some clarity on acceptable methodologies.
Guidance on GMP equalisation methodology published
Guidance outlining the methods that schemes should use to equalise for the inequalities of guaranteed minimum pensions has been published by the GMP Equalisation Working Group. Read more
The issue of GMP – the minimum pension that an occupational pension scheme contracted out of the additional state pension between April 6 1978 and April 5 1997 on a salary-related basis has to provide to its members – has affected millions of pensioners through unequal payments.
Guidance outlining the methods that schemes should use to equalise for the inequalities of GMPs was published last month by the GMP Equalisation Working Group.
