UK. DWP publishes guidance on GMP equalisation
The Department for Work and Pensions has published its first round of guidance to help trustees resolve unequal guaranteed minimum pensions today.
A GMP is the minimum pension that an occupational pension scheme, contracted out of the additional state pension between 6 April 1978 and 5 April 1997 on a salary-related basis, has to provide to its members.
GMPs were abolished for contracted out service after 5 April 1997.
The guidance, developed in conjunction with an industry working group, provides a recommended road map for trustees to follow in ensuring they comply with last year’s landmark Lloyds judgment.
Judges in that case found the GMP system had historically operated unequally. The High Court ruling endorsed the government’s methodology for the complex process of restoring equality to GMP schemes.
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