GMP equalisation (updated) PASA has issued guidance on the tax implications of GMP equalisation: read the guidance. Check out the latest update from the Chair of the GMP Equalisation Working Group, Geraldine Brassett, as she looks back at 2021 and looks forward to the group’s plans for the year ahead. The High Court’s decision in the first Lloyds Banking case finally clarified the need to equalise for the effect of GMPs. GMP equalisation What now? With the bill estimated at anything up to 4% of liabilities, that would have an obvious – and unpleasant – impact upon costs. The uncertainty could be removed later this year by the Lloyds court judgement. We expect to now issue the tax Guidance by the end of February 2021. There is no single prescribed way of computing the equalisation calculation; however, a range of methods were confirmed as permissible by the court. 09 September 2020 Articles. For benefits earned from 17 May 1990 (the date of an earlier equal treatment judgment in the case of Barber v GRE), schemes have had to provide equal benefits and equal retirement ages for men and women. That question is addressed in the follow-on judgment. Latest on Guaranteed Minimum Pension (GMP) Equalisation – guidance on data issues. This newsletter is published by HMRC’s Pension Schemes Services to update stakeholders on the latest news for pension schemes. It notes that many schemes are still in the early stages of GMP equalisation exercises which is partly because of questions which remain particularly in respect of GMP conversion. Company number: 6597097. 03 November 2020. Update on GMP Equalisation. Shortly after the recent High Court decision on the issue of guaranteed minimum pension (GMP) equalisation and historic transfers (the latest ruling in legal proceedings relating to a number of pension plans connected with the Lloyds Banking Group) we published a summary of the judgment and our initial reaction. By the age of 60 a female would have built up her full GMP, but a male would have to wait until age 65 before achieving this. It will take only 2 minutes to fill in. This will need to be built into GMP equalisation calculations and communicated to members in line with existing reporting procedures. The Pensions Administration Standards Association (PASA) has released an update in relation to Guaranteed Minimum Pension (GMP) Equalisation. There is a further update on GMP conversion at the end of this newsletter. Guidance from the GMP Equalisation Working Group in September 2019 tries to fill some of the gaps. Update 26th January 2021. It concluded that schemes will need to consider whether to review past transfer values - potentially going back 30 years - and determine whether these need to be topped up. You can change your cookie settings at any time. GMP Equalisation Under the Microscope – Claims for GMP Equalisation Top-ups to Historic Transfers. January 2021 – GMPE Working Group update. This will affect members of Defined Benefit pension schemes who accrued benefits between May 1990 and April 1997 only. If pension schemes have started to pay pensions and made lump sum payments, further payments may be … 1 Oct 2019. Since then, the Department for Work and Pensions, HMRC and an industry … Guaranteed Minimum Pension (GMP) equalisation – an update from the Trustee. The PASA GMP equalisation working group has published new guidance on data required for GMP equalisation – the guidance is aimed at helping schemes identify the data required, and to find solutions to some issues that may arise. But a change in law means we must recalculate benefits built up between 17 May 1990 and 5 April 1997 to ensure the total benefit is equal. GMP Equalisation . To date GMP equalisation has primarily been carried out for schemes buying out or transferring to the PPF, with ongoing schemes deferring the exercise. Examples include full contracted-out earnings data to calculate GMP accrued specifically over the equalisation period 17 May 1990 to 5 April 1997. Update on GMP Equalisation 03 November 2020 Last year, we told you about a High Court judgment made at the end of 2018 in relation to Guaranteed Minimum Pensions (GMPs). Unfortunately, there is still no guidance from HMRC on GMP conversion and that may be a long way off at best. Watch now on-demand. Where changes to benefits are made to implement GMP equalisation, there is no need to revisit pension input amount calculations done in the past, but calculations for the pension input amount in the tax year of implementing GMP equalisation and in subsequent tax years will need to take account of the revised amount of benefit entitlement in both the opening and closing benefit amount calculations. In the much-anticipated judgment in the latest round of the Lloyds Banking Group equalisation case, the High Court ruled on 20 November that past individual transfers out made under the cash equivalent legislation will need to be revisited, a decision that will add further cost and complexity to the task of scheme trustees to equalise for the effect of Guaranteed Minimum Pensions (GMPs). GMP equalisation benefit adjustment may mean the rights protected by primary and individual protections are higher than originally notified to HMRC. Welcome to the Greater Manchester Police website. GMP equalisation: hearing on past transfer liability for trustees. The Pension Administration Standards Association has, on behalf of the industry working group for Guaranteed Minimum Pension (GMP) equalisation, published guidance on the data aspects of an equalisation project to help trustees prepare their pension scheme’s data. pensions (GMP) equalisation, and whether affected trustees will need to revisit past transfers out of a formerly contracted-out pension scheme. However, for most UK schemes the pension built up by members until April 1997 included GMPs because their pension scheme contracted out of SERPS. The guidance highlights tax issues which schemes may face when adjusting benefits to correct for the inequalities of GMPs and it identifies possible approaches for dealing with … Lloyds Bank GMP equalisation case. The Pension Administration Standards Association has, on behalf of the industry working group for Guaranteed Minimum Pension (GMP) equalisation, published guidance on the data aspects of an equalisation project to help trustees prepare their pension scheme’s data.. We will provide a further update in due course. The hearing relates to a former member of the scheme who transferred their benefits elsewhere - prior to equalisation - and looks at just how these members should be treated for GMP equalisation purposes. The hearing relates to a former member of the scheme who transferred their benefits elsewhere - prior to equalisation - and looks at just how these members should be treated for GMP equalisation purposes. Read about what we’re doing to make pensions with GMP equal . Its intended to update this Guidance Note to reflect changes to the law, guidance (including guidance published by HMRC) and practice. Brexit: end of implementation period. GMP Equalisation Working Group – Update January 2021. It does not provide answers to all the uncertainties still surrounding GMP equalisation. The GMP Equalisation Working Group has published further good practice guidance covering the tax issues relating to the equalisation of GMPs. This newsletter is published by HMRC in February 2020 to update stakeholders on … UPDATE ON GMP EQUALISATION. To help us improve GOV.UK, we’d like to know more about your visit today. This guidance applies irrespective of whether equalisation is to be achieved via the conversion approach, or by retaining … Master Trust Transitions Working Group (MTTWG), DB Transfer Code of Good Practice – Consultation. There are many opportunities to shorten the road. The Department for Work and Pensions will now prepare guidance for … Other guidance published by the GMP Equalisation Working Group This Guidance Note is focused solely on tax considerations which may arise in GMP equalisation projects. We are waiting for judgment in the latest instalment … new Covid-19 Update. GMP equalisation: Two years on since the Lloyds judgment. Key point: The update contains links to the various sets of guidance issued in 2020 … Guaranteed minimum pension (GMP) is calculated differently for males and females. Gowling WLG Updates. Recent rulings in the long-running guaranteed minimum pensions equalisation (GMP) litigation should prompt pension schemes to think again about how their forfeiture rules and the statutory time bar in the 1980 Limitation Act can affect a member's claim for underpaid benefits where investigations arise. In these, cases, the increased pension will need to be used to update the LTA calculation for any retirement Benefit Commencement Event (“BCE2”) from that date. Volume 2020 | Issue 35. The Pensions Administration Standards Association, Driving standards in pensions administration in the UK. This site is a beta, which means it's a work in progress and we'll be adding more to it over the next few weeks. It confirmed that pension schemes like ours need to make sure GMPs built up between 17 May 1990 and 6 April 1997 are equal between men and women. The GMP Equalisation Working Group has published further good practice guidance covering the tax issues relating to the equalisation of GMPs. Check out the latest update from the Chair of the GMP Equalisation Working Group, Geraldine Brassett, as she looks back at 2021 and looks forward to the group’s plans for the year ahead. Working Group Update GMP Equalisation Probably like most people as the year comes to end, my thoughts turn to planning for 2021. Online services for Greater Manchester Police; report a crime, get help and advice and read latest news and appeals. About the Author. We also use cookies set by other sites to help us deliver content from their services. Download this FYI as a printable PDF. Earlier this month a third hearing took place in the ongoing case of Lloyds Banking Group Pensions Trustees Ltd v Lloyds Bank PLC & Others (HC-2017-001399) (“Lloyds case“).Click here to read our most recent blog on GMP equalisation and the Lloyds case. We will provide a further update in due course. GMPEWG – review of 2020. There has been recent coverage in newspapers of the problem of GMP equalisation, resulting from a court case involving the Lloyds Bank pension schemes and the need for schemes to equalise benefits to remove gender inequalities in the GMP calculation. Last year, we told you about a High Court judgment made at the end of 2018 in relation to Guaranteed Minimum Pensions (GMPs). It aims to help trustees understand what data will be required to carry out GMP equalisation and what to do in the case of missing data. However, the Lloyds case in the High Court in 2018 has thrown the situation into sharp relief. Sign up. 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