Defined benefit (DB) schemes that provide GMPs must revisit and, where necessary, top-up historic cash equivalent transfer values (CETVs) that have been calculated on an unequal basis, a landmark court judgment said last week.
It also stated that trustees that did not calculate a GMP when making the transfer may have "committed a breach of duty" if they made an "inadequate" payment. The judgment in the second instalment of the GMP equalisation litigation involving Lloyds Banking Group's DB pension schemes was handed down on Friday (20 November) following a court hearing back in May and two additional court hearing days in October on the question of past transfers-out. Justice Morgan also held that the trustees of Lloyds' schemes are not discharged from the need to top-up historic CETV payments by any statut...
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