Implementation of Lloyds GMP ruling will be 'simpler than it looks'

Legal experts suggest

James Phillips
clock • 3 min read

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

More on Pensions

Case study: The hidden risk of a single member SSAS without a professional trustee

Case study: The hidden risk of a single member SSAS without a professional trustee

The problem, the solution, lessons learned

Caitlin Southall
clock 30 March 2026 • 4 min read
Salary sacrifice protections overturned by House of Commons

Salary sacrifice protections overturned by House of Commons

Commons overturns Lords amendment to increase cap to £5,000 from initial £2,000 proposal

Holly Roach
clock 24 March 2026 • 1 min read
 Rachel Vahey: Advisers and clients still need clarity on NMPA increase

Rachel Vahey: Advisers and clients still need clarity on NMPA increase

'HMRC has had years to clear this up but has sat on its hands'

Rachel Vahey
clock 11 March 2026 • 4 min read