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The Actuary The magazine of the Institute & Faculty of Actuaries

IFoA Risk Alert on GMP equalisation


The IFoA has issued a Risk Alert following the recent decision of the English High Court in a case brought by Lloyds Banking Group Pensions Trustees Limited (26 October 2018). It held that UK pension schemes with Guaranteed Minimum Pensions (GMPs) accrued from 17 May 1990 must equalise for the different effects of these GMPs on men and women.

The issues arising from this ruling are complex, both from an actuarial and legal perspective, with potentially significant funding implications for schemes. The Risk Alert draws attention to the importance that actuaries are not drawn into providing advice on the legal (as opposed to actuarial) implications. Separate legal advice may also be appropriate.