The High Court ruling on guaranteed minimum pension (GMP) equalisation may have said various methods were possible but, in practice, schemes will find it fairly easy to implement, legal experts say.
In a landmark decision last week, the High Court ruled in the Lloyds case - saying pensions provided to members who had contracted-out of their scheme must be recalculated to ensure payments reflect the equalisation of normal retirement ages in the 1990s. Most schemes will be able to, and want to, adopt the same approach as is most likely to be chosen by Lloyds and its schemes, method C2 - where the accumulated GMPs paid to men and women are compared on an annual basis, with interest applied. Once they have done that, the statutory conversion option (D2) is possible, where an actuary...
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