Wednesday, March 3, 2021
  • Contact
Pension Changes
  • Government Policy
  • Pension Changes
  • Pension Information
  • Pension Rights
  • Retirement Pension
No Result
View All Result
Pension Changes
Home Pension Changes

GMP working group publishes rectification guidance

March 19, 2020
in Pension Changes
GMP working group publishes rectification guidance
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter

The cross industry GMP Equalisation Working Group (GMPEWG), chaired by the Pensions administration Standards Association (Pasa), has today issued its latest GMP guidance on ‘When to Rectify’.

The new guidance, created by the Reconciliation and Rectification Sub-Group, outlines four recommendations for trustees to ensure they make the right decisions for their scheme when navigating GMP rectification alongside equalisation.

Understanding the data is a preliminary focus in the guidance, with trustees urged to understand the number of members requiring rectification and how this population overlaps with those in scope for equalisation.

The nature and timing of the task is given a similar focus, with the guide emphasising the need to understand when to rectify, the potential approaches available, and again, how this dovetails with the work required for GMP equalisation.

The group has also stressed the need to consider the impact on members, and significantly, the impact of any delay which could occur whilst finalising an equalisation project.

Finally, trustees have been urged to thoroughly document and consider the scheme’s position, focusing on factors that could influence a decision about when to undertake rectification for those also impacted by equalisation.

Commenting on the guidance, Pasa chair of the GMPEWG, Geraldine Brassett, said: “In the past, schemes would have undertaken GMP rectification once the GMP reconciliation was complete or nearly complete.

“However, the need to also undertake a project to equalise benefits for the effects of GMP may result in schemes questioning whether to undertake their GMP rectification exercise once reconciliation is complete or defer this and combine it with the GMP equalisation project

“There isn’t a ‘one size fits all’ answer to this question, it’s a scheme specific decision.

“The starting position should be that GMP rectification should be progressed in a reasonable timeframe. In cases where GMP rectification is delayed in order to combine it with GMP equalisation, the evaluation of the impact of doing so and the rationale for deferral should be clearly documented.

“This new guidance will help trustees ensure they can be fully satisfied all members in scope are rectified and, where necessary, equalised at the right time.”

The group previously published its broader guidance on how to traverse equalising benefits in July 2019, in its ‘Call to Action‘ paper.

Hymans Robertson head of GMP equalisation, Matt Davis, added: “The technical aspects of GMP reconciliation, rectification and equalisation won’t be front of mind for many in the pensions industry as business continuity plans kick into gear.

“The industry will be pleased that further practical guidance has been released, which will help schemes consider whether to combine rectification and equalisation pension changes for members in different circumstances.

“Ultimately this is depends on circumstances rather than there being a blanket approach for the industry. The guidance also highlights that for many schemes GMP equalisation will take a few years.

“Many schemes still need data from HMRC in order to reconcile GMP records against scheme records. These schemes then need to decide what to do if there are differences between scheme records and HMRC records, before rectification can be undertaken and Pasa guidance can help with this.”

— to www.pensionsage.com

Related posts

Freeports, green recovery and levelling up: What North West business leaders want from Budget 2021

Freeports, green recovery and levelling up: What North West business leaders want from Budget 2021

March 2, 2021
Teachers at Wycliffe College in Stroud to strike over pensions

Teachers at Wycliffe College in Stroud to strike over pensions

March 2, 2021
Previous Post

New coronavirus law will ‘strengthen the quarantine powers of police’

Next Post

Alex Bell: No possible win in war against pandemic without welfare state that actually works

Next Post
Alex Bell: No possible win in war against pandemic without welfare state that actually works

Alex Bell: No possible win in war against pandemic without welfare state that actually works

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

Eastern neighbouring countries’ pensioners’ privileged status in Riga public transports cancelled | Baltic News Network

Eastern neighbouring countries’ pensioners’ privileged status in Riga public transports cancelled | Baltic News Network

8 months ago
Swatting, stooshies and politicians galore – the politicisation of Mumsnet

Swatting, stooshies and politicians galore – the politicisation of Mumsnet

5 months ago
FG defaults in pension remittance for six years – Punch Newspapers

FG defaults in pension remittance for six years – Punch Newspapers

9 months ago
UK think tank urges pension cuts to pay for pandemic

UK think tank urges pension cuts to pay for pandemic

11 months ago

FOLLOW US

  • 81 Followers
  • 27.6k Followers

BROWSE BY CATEGORIES

  • Government Pension Policy
  • Pension Changes
  • Pension Information
  • Pension Policy
  • Pension Rights
  • Retirement Pension
  • Uncategorized

BROWSE BY TOPICS

2021 2021 Pensions bbc news CCP retirement check my state pension civil service pension reform Disabled pensions drawdown government policy examples uk how much is state pension lic pension plans Minutes of Meeting new state pension PAB Meeting Minutes PAB Minutes Pension age pension changes announced today pension issues pension meaning pension ombudsman pension plan pension reform definition Pensions Advisory Service Pensions Brexit pension scheme uk Pensions outlook retirement 2 million retirement pension sbi life saral pension plan calculator scams scheme funding Single mothers pensions State Pension State Pension age state pension changes state pension forecast State Pensions State triple lock the pensions regulator Therese Coffey uk pension age uk pension for eu citizens after brexit UK State Pension uk state pension age uk state pension calculator

POPULAR NEWS

  • Multiemployer pension reform not happening this year

    Multiemployer pension reform not happening this year

    5 shares
    Share 0 Tweet 0
  • Exit payment cap: Implications for the LGPS

    0 shares
    Share 0 Tweet 0
  • Public Service Pensions Update | October 2020

    0 shares
    Share 0 Tweet 0
  • What is the average UK retirement income?

    0 shares
    Share 0 Tweet 0
  • NEST: More than a pension | Country Report

    0 shares
    Share 0 Tweet 0

Follow us on social media:

Recent News

  • Freeports, green recovery and levelling up: What North West business leaders want from Budget 2021
  • Capital Gains Tax: Rishi Sunak’s Budget may mean ‘stealth’ change to CGT | Personal Finance | Finance
  • Enfield Council slammed over £30m fossil fuel investments

Category

  • Government Pension Policy
  • Pension Changes
  • Pension Information
  • Pension Policy
  • Pension Rights
  • Retirement Pension
  • Uncategorized

Recent News

Freeports, green recovery and levelling up: What North West business leaders want from Budget 2021

Freeports, green recovery and levelling up: What North West business leaders want from Budget 2021

March 2, 2021
Capital Gains Tax: Rishi Sunak’s Budget may mean ‘stealth’ change to CGT | Personal Finance | Finance

Capital Gains Tax: Rishi Sunak’s Budget may mean ‘stealth’ change to CGT | Personal Finance | Finance

March 2, 2021
  • About
  • Advertise
  • Careers
  • Contact

© 2020 Please contact us on partnership@pensionchanges.co.uk if you would like to reach our audience.

No Result
View All Result
  • Contact

© 2020 Please contact us on partnership@pensionchanges.co.uk if you would like to reach our audience.