Guaranteed minimum pension reconciliations

Published by Julian Mainwood on

The abolition of contracting out for defined benefit (DB) schemes in April 2016 will require all schemes to reconcile their Guaranteed Minimum Pension (GMP) liabilities.

Trustees should act now to ensure they are able to meet this requirement, as HM Revenue & Customs (HMRC) are likely to be dealing with an increasingly large number of queries leading up to and in the years following the end of contracting-out.

This information sheet provides details of what a GMP reconciliation is, when GMPs should be reconciled and how much work is involved, as well as further information.