Some of the questions we have been asked this week in relation to GMP equalisation, include –
Do we have to equalise for GMPs?
How do we do this?
Do we have to make back payments?
What should we tell our members?
How do we deal with outstanding and new cash equivalent transfer value requests?
These are all valid questions. Unfortunately, not all of them can (or should) be answered immediately!
First of all, a bit of background
Prior to 6 April 2016, pension schemes could be contracted-out of the state second pension. Between the years 1978 and 1997, the contracted-out element of a member’s pension was called the guaranteed minimum pension (GMP). This was broadly equivalent to the amount of state pension being given up by the pension scheme member via contracting-out in return for the payment of lower national insurance contributions. Continue Reading
It was inevitable that at some point the Pension Protection Fund standard guarantee would be put to the test in the courts. That’s exactly what happened when a guarantee in favour of the Caribonum Pension Scheme was triggered by sponsor insolvency. Although not a surprising outcome, trustees of pension schemes which have Type A PPF guarantees in place can now sleep easier in the light of the court’s ruling granting summary judgment to the Scheme, notwithstanding the construction and abuse of process arguments put forward by the guarantor. The latest edition of the “Purple Book” says that 452 schemes currently certify Type A guarantees for PPF levy reduction purposes; but there will be many other schemes where such a guarantee is in place but is no longer certified. For further discussion and analysis of the case please see Pensions Disputes partner Garon Anthony’s 
The writing may not always be on the wall in terms of validating scheme amendments where historic documentation is scarce and in terms of recovering overpayments to pensions. An interesting case involving the BIC UK Pension Scheme (yes, “BIC” as in the pen that you may be holding) highlights a new way forward for trustees struggling with limitation periods and gives further hope to schemes wanting to rely on employer agreement to changes that took place in times of more informal recording keeping. 
Since 6 April 2018 companies have been 
