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.
