Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • July 2019
07

PASA publishes GMP equalisation guidance

Open-access content 17th July 2019

The Pensions Administration Standards Association (PASA) yesterday published guidance for UK schemes undertaking guaranteed minimum pensions (GMP) equalisation.

2


The guide identifies three areas that pension schemes should start working on as soon as possible, such as reviewing the quality of data needed for GMP equalisation.

The PASA said schemes should also begin understanding and progressing GMP reconciliation and rectification, and start managing impacted transactions.

"Equalisation has the potential to be a highly complex project for many schemes," the chairs of the sub-groups that prepared the guidance said.

"We felt all stakeholders in the operation of a scheme could benefit from some information to help them take the first step on this journey - this aims to provide exactly that."

The High Court ruled last year that benefits for members contracted out of the top-up state earnings-related pension scheme must be recalculated to reflect retirement ages in the 1990s.

It is thought that this could hit UK companies' profits by £32bn, with up to eight in 10 of schemes' employers forced to report the cost of GMP equalisation in their accounts.

The PASA's GMP Equalisation Working Group said that trustees, managers, administrators, sponsors and advisers must work collaboratively to ensure the process is a success.

It also urged stakeholders to recognise which aspects of the equalisation project will be scheme-specific, and those that will be common to all schemes.

Moreover, the PASA urged pension schemes to identify good practice in terms of planning, management and efficiency.

"Taking early action will help trustees be in the best possible position to deliver this complex work," the Pensions Regulator's executive director of regulatory policy, analysis and advice, David Fairs, said.

"We welcome the publication of this call to action which provides trustees and their advisers with practical guidance on how to take the first steps in meeting GMP obligations."

Full guidance documents for data, impacted transactions, methodology, and tax will be issued later this year, while advice on the relationship between GMP rectification and equalisation will also be published.


Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession

This article appeared in our July 2019 issue of The Actuary.
Click here to view this issue
Filed in:
07
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Make the switch from Pensions > Life Insurance

Manchester
Excellent Salary + Bonus (study support if required)
Reference
118732

Nearly/Newly Qualified Actuary – With Profits Reporting & Valuation

Scotland
£Upon Application
Reference
118763

Director of Investment Risk

London (Central)
+ comprehensive benefits
Reference
118783
See all jobs »
 
 

Most-Popular

 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200