Industry groups slam DWP proposals on GMP equalisation

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Seven industry bodies have written to Steve Webb strongly criticising the government's proposals on Guaranteed Minimum Pension equalisation and calling for equalisation guidance put forward in January to be scrapped.

The letter from the Occupational Pension Schemes Joint Working Group, which works closely with the Department for Work and Pensions, warned that proposals in a consultation on the issue that closed this week are largely unnecessary and would increase scheme liabilities by £13bn with implementation costs of £300m. It claimed the changes put forward go far beyond what is required by European law and argued there is no need for additional legislation. The letter continued: "If nevertheless the government wishes to introduce changes to implement Allonby [the case in relation to comparator...

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