GMP Equalisation of Company Pension Schemes

Published / Last Updated on 25/02/2019

GMP Equalisation of Company Pension Schemes and High Court ruling impact in November 2018.

Barber v GRE (1990) - the equalisation of pension rights and pension ages was a gradual movement of all company and state pension ages for men and women to the same age to avoid discrimination.

In the High Court in November 2018 - Lloyds Bank Pension schemes were the 'test' case where the scheme was Contracted out of SERPS meaning a Guaranteed Minimum Pension (GMP) equivalent of SERPS offered within the company pension scheme

Between 1978 and 1997, pension ages differed meaning women initially had a greater proportion of their company pension as GMP which increases at a different rate to normal pension rights and gradually Men’s pension getting better.

The High Court ordered that all should be equalised meaning that some people will get additional redress/compensation pension income. 

So expect in some cases, a marginal increase in your company pension rights which must be backdated.

BUT:  If you have Fixed Protection of your Lifetime Allowance this 'extra' pension accrual may mean you lose your Fixed Protection and face huge Tax Bills - HMRC is in consultation right now (we assume to protect you from this) by amending Fixed Protection Rules.

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