For most schemes, Guaranteed Minimum Pension (GMP) rectification would naturally follow on from the completion of GMP reconciliation, but with the Lloyd’s judgement and the need to equalise GMP benefits, some trustees are wondering whether to combine rectification and equalisation projects.
Helpfully, the Pension Administration Standards Association (‘PASA’) has issued helpful guidance on four steps you should consider as trustees when planning GMP rectification and equalisation projects, to ensure you make the best decision for your scheme.
There are four steps to help you make the right decision:
- Step 1 - Understanding the data
- Step 2 - Understanding the nature of the task
- Step 3 - Considering the impact on members of any delay
- Step 4 - Considering and documenting other factors influencing the timing of GMP rectification
The PASA guidance provides interesting food for thought and a number of key decisions that trustees will need to make. Click on the link below for more information.
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