Managing GMP equalisation for your pension scheme

Equalising pensions in line with the requirements of the Guaranteed Minimum Pension (GMP) can be complex. We’ve been helping more than 100 pension schemes to manage themselves successfully. Find out how we can support you to manage equalisation to suit your specific needs.
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Simplifying the complex

Guaranteed Minimum Pension (GMP) equalisation may seem a daunting concept, but absorbing the requirements into your pension scheme doesn't have to be difficult or drawn out.

We simplify the complex by applying the combined power of our actuarial, administrative, data and communications expertise to make GMP equalisation easy for pension schemes to implement.

With more than 100 GMP exercises under our belt already, our team of experienced experts can help you manage your programme in a compliant, streamlined way, even as the pensions landscape shifts.

It's that breadth of experience that makes us so well placed to deal with any curveballs that might come your way: whether it's uncertainty over retirement benefits or missing salary details.

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Getting ready - what can you do now?

So what can schemes do now? Actually there is quite a lot, but trustees should focus on these things:

01

Plan ahead

Absorbing an equalisation programme into the day-to-day running of your pension scheme can be a challenge. The first step is to ensure you have the right team in place not only to advise but also to deliver GMP equalisation. Select an experienced project manager to assist you in drawing up a strategic plan for your GMP requirements.

02

Get your data ready

If you haven’t already reviewed your data, understanding the information you need for GMP equalisation and, potentially, conversion is an important aspect of your due diligence before you start your equalisation activity. If you need to improve the quality of these data items, this is something you can work on right now.

03

Reconciliation and rectification

As part of a trustee’s strategic planning, reconciliation and rectification exercises should be considered as part of the overall requirements to equalise GMPs. Regardless of the method of equalisation, the base data used needs to be correct to ensure that this exercise is completed appropriately.

04

Make decisions around member payments

Transfer values: will these be quoted on an equalised basis and, if not, what’s your interim approach? Trivial commutations and small lump-sum payments: will you withdraw or amend the member option? Death benefits: determine how to calculate survivor benefits. Will the trustees allow for a trivial commutation lump sum? Protected pension age and scheme-specific lump-sum protection: how will you manage the pensions of those members looking to retire?

Our approach

Support where you need it most

We believe that trustees should be able to tailor projects to fit the unique requirements of their schemes. Our modular approach to GMP means our specialists are there to support you when and where you need them most. For schemes administered in-house, we can even deploy our specialist staff on an interim basis – supplementing your existing teams and ensuring a continued focus on day-to-day administration.

Strategic GMP planning

Based on our knowledge of your scheme, we’ll take you through a personalised checklist to make sure you’re ready to move towards equalisation. Our consulting, administration experts and our legal partners provide a joined-up approach to provide:

  • Guidance notes
  • Scoping and population definition
  • Detailed project plan
  • Specialist insight

Data analytics and cleansing

We’ll analyse the scheme benefits and validate your data. We can assist in a wide range of data assessments and correction exercises, from tracing members to fixing systemic and individual data issues.

End-to-end project management

We ensure appropriate scheduling of change, combining reconciliation and equalisation exercises and providing coherent messages to members.

Calculation and application of redress

We have the expertise to cater for all forms of GMP equalisation. By generating estimated figures and back payments, we allow our clients to refine their strategic decisions earlier in the process, simplifying the decision making process.

  • Automation
  • Payments management
  • Treasury and reconciliation services

Communications

Clear, appropriate and timely member communications are critical. The scale of our communications expertise means we can meet even the most complex communications requirements to ensure a joined-up experience for your members, including:

  • Communications strategy and design
  • Production and mailing services
  • Mailings and response management
  • Digital delivery online, emails and SMS

New operational framework

We help you understand and address the impact of GMP equalisation on ongoing administration, including:

  • Pensions calculations
  • Letters
  • Processes
  • Pension increases
  • Benefit statements
  • Governance
  • Resourcing

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“Clearly, projects to equalise benefits for the effects of GMP will be specific to each scheme but we can help schemes to effectively manage the process and provide the best service for sponsors, trustees and members.”

Geraldine Brassett, Key Account Director at Capita and Co-Chair of the PASA GMP Equalisation Working Group

Further resources

Watch our on-demand webinar


Register to watch our latest on-demand webinar chaired and presented by our expert speakers Geraldine Brassett, Key Account Director & Heather Buttle, Actuarial Consultant on GMP equalisation and what this means for your schemes in tackling this important issue.

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Call for Action by industry group


A group of representatives from across the industry has issued a Call for Action by trustees and employers. The group is recognised by The Pensions Regulator and is made up of professionals from the administration, legal, advisory, actuarial, data and trustee sectors.

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Insight: The background to the GMP


GMPs have been part of the pensions landscape since 1978 and, despite various attempts over the last decade to address equalisation issues, it is only now that we seem close to adding the final piece of the puzzle.

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How can we help your organisation?

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Explore our solutions

01

Pensions administration

No matter your size or sector, we take the pressure off your practical and regulatory pension administration burdens with our range of scalable services and holistic solutions.

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02

Data tracing

Our data and tracing expertise can help you to be compliant, ensuring that your customers or pension scheme members, past and present, don’t lose out.

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03

Atlas Master Trust

The trustee-led Master Trust represents the considered choice for employers who want their people to have the financial futures they choose. We offer a range of different investment funds to suit our members.

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