It is now over two years since the original High Court decision in Lloyds No.1 confirmed that schemes are under a duty to equalise for the effect of GMPs. A series of guidance notes from the GMP equalisation cross-industry working group established by PASA followed, together with guidance from HMRC on the pensions tax implications of pure equalisation. More recently, Lloyds No.3 considered the impact of the need to equalise on past transfers out.
Despite how far we have come over the last couple of years or so, there are still some potential traps lurking in the GMP undergrowth. Focusing on both GMP equalisation and conversion exercises, Janet Brown, Lucy Dunbar and Sonya Fraser cover: