2nd November 2018 Anna Rogers comments in Professional Pensions Lloyds GMP ruling giving a clear way forward
The High Court ruling on guaranteed minimum pension (GMP) equalisation may have said various methods were possible but, in practice, the method that most schemes will adopt seems pretty clear. Many questions remain about the detail of implementation, but appeal seems unlikely.
In a landmark decision last week, the High Court ruled in the Lloyds case – saying pensions must be recalculated to equalise the effect of any 1990-97 GMPs.
Anna Rogers commented that the judge arrived at a “clever result”, providing a clear steer on the route for equalising benefits, based on the “principle of minimum interference”.
“There is only really one way of doing it,” she said. “There’s only one way that both the employer and the trustees can insist on. The employers can insist on the lowest cost way of doing it and the trustees can insist that they obviously have to do it, and those only converge on the one method.”
Please read Anna’s comments in Professional Pensions
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