Our five pension predictions for 2021

2020 has been a uniquely challenging, unpredictable and eventful year, dominated (as we all know too well) by the impact of Covid-19, which has changed the way we live, work and do business, and also by the preparations for Brexit. Both of these themes will undoubtedly continue to dominate the economic and political agenda in … Read more

Pension Disputes Bulletin – December 2020

Welcome to the latest edition of our quarterly pensions disputes bulletin. In this edition we cover: the 2nd judgment in the Lloyds Bank GMP equalisation litigation and new guidance relating to GMP equalisation key developments in relation to the Pension Schemes Bill the predicted rise in Covid-related complaints to the Pensions Ombudsman recent cases on transfers, insurance, investment, … Read more

Podcast: Pensions Policy EP2 – What to expect in 2021?

We thought it would be helpful for our listeners if we considered some of the key pensions-related themes and risks that we expect to emerge in 2021. Therefore, in our latest pensions podcast Rachel Pinto and Michael Aherne from our UK pensions team discuss their predictions for 2021 relating to: the new offences and regulatory … Read more

Judge rules trustees are required to top-up historic cash equivalent transfer values in 2nd Lloyds judgment

The judgment in the 2nd instalment of the GMP equalisation litigation involving Lloyds Banking Group’s defined benefit (DB) pension schemes, has been handed down today (Friday, 20 November 2020). The judgment confirms that trustees of DB schemes that provide Guaranteed Minimum Pensions (GMPs) are required to revisit and, where necessary, top-up historic cash equivalent transfer … Read more

HMRC publishes latest GMP equalisation tax guidance on lump sums and top-up payments

HMRC recently published the second instalment of its guidance on the tax consequences of implementing GMP equalisation. While the guidance provides clarity and offers solutions in some areas, it also identifies some potential problems for schemes, in particular, raising the prospect of trivial commutation lump sums that have previously been paid being treated as unauthorised … Read more

EWG issues guidance on GMP equalisation and data issues

The cross industry GMP Equalisation Working Group (EWG) has published its latest guidance paper on the common data issues associated with implementing GMP equalisation. Whilst the guidance offers potential solutions to a variety of common data issues that schemes may face, as it acknowledges, the solutions described are not exhaustive and trustees will ultimately need … Read more

GMP equalisation working group publishes guidance on when to rectify

Back in March, the cross-industry Guaranteed Minimum Pension (GMP) Equalisation Working Group issued guidance on GMP rectification. It outlines what trustees need to consider when combining GMP rectification with the GMP equalisation project, in light of the Lloyds judgment. The guidance covers four key steps that trustees need to take: 1. Understand the data a) … Read more

Podcast: GMP Equalisation EP1: What is GMP conversion and how does it work?

Listen to our latest pensions podcast as Tim Smith, Professional Support Lawyer at Herbert Smith Freehills, and John Cormell, Actuary and Head of GMP Equalisation at Barnett Waddingham, discuss the merits of using GMP conversion to equalise members’ benefits for the effect of Guaranteed Minimum Pensions (GMPs). In this podcast, Tim and John discuss: what GMP … Read more