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Guaranteed Minimum Pension (GMP) – an update

Posted on: 01/12/2020

In October 2018, the High Court ruled in the Lloyds Banking Group case that the Guaranteed Minimum Pension (GMP) benefits for men and women should be equalised for benefits built-up between 17 May 1990 and 6 April 1997. There were however some matters that required clarification and further hearings were due.

The Nationwide Pension Fund like many others, was contracted-out of the Government’s State Earnings-Related Pension Scheme and will have members who may be affected by this ruling.

On 20 November 2020, the High Court made a further determination on this matter, specifically to confirm that past transfers out of pension schemes were potentially in scope of the GMP equalisation requirements.

The Trustee will be considering the detail of all the judgments with its advisers to assess how they may impact the Fund and some members’ pension benefits, however this will take some time. The Trustee is not currently in a position to confirm any impact, but as and when the position is known, the Trustee will communicate directly with any affected members.