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Eversheds comment: UK Government to press ahead with GMP equalisation

  • United Kingdom

    09-04-2013

    Commenting on the Department for Work and Pensions’ interim response to its consultation on GMP equalisation, Francois Barker, pensions partner at global law firm Eversheds, says:

    “We are disappointed that the Government is pressing ahead with GMP equalisation despite significant objections from the industry. This is a hefty dose of additional red tape and cost for defined benefit plan sponsors and trustees when there are enough other challenges requiring attention and resource. However, we welcome the Government’s decision to step back from prescribing a “gold plated” methodology for equalisation.

    “We anticipate that the advent of a formal legislative requirement to equalise GMPs will lead to trustees and sponsors making more use of the existing statutory powers to convert GMPs into standard scheme benefits – something which has not so far gained significant traction.”

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