23rd November 2018 Anna Rogers comments in the Financial Times on High Court GMP Equalisation ruling affecting millions in defined benefit schemes
Jo Cumbo writes in the Financial Times that good news is on the way for millions of members of company retirement schemes who are set to share in an estimated £15bn windfall following the landmark Lloyds court ruling last month. The decision affects millions who saved into private sector “defined benefit” schemes in the 1990s who are now set to receive a bonus, amounting to hundreds or even thousands of pounds in extra pension money.
Anna Rogers said that trustees of a pension scheme would contact affected pensioners and deferred pensioners, including widows, widowers, civil partners and any other dependants who have an entitlement after a member has died.
When it comes to members who no longer have benefits in the scheme she said “Former members can assume the scheme will do what it is required to do. But it may take months, possibly years, to sort out. We don’t expect trustees will have to go to the ends of the earth to track down or correct cases if it’s not proportionate, spending money in the pursuit of perfection that would have been available to other members.”
She added that even after a buyout, if an insurer had not made an adjustment for GMP equalisation, then there “may be a contractual right to have it”.
Read Anna’s comments in the Financial Times
The views in this article are intended for general information purposes only and should not be used as a substitute for professional advice. ARC Pensions Law and the author(s) are not responsible for any direct or indirect result arising from any reliance placed on content, including any loss, and exclude liability to the full extent. Always seek appropriate legal advice from a suitably qualified lawyer before taking, or avoiding taking, any action. If you have any questions on the points raised in the above, please do not hesitate to get in touch.