GMPs – trying for a conversion?
As this year’s Six Nations Championship gathers pace, the northern hemisphere rugby union fraternity is steadily getting to grips with “experimental law variations”. From 6 April 2009, a new pensions law variation takes to the field – the option to convert members’ Guaranteed Minimum Pensions (GMPs) into ordinary scheme benefits. Together with new regulations, amendments made to the Pension Schemes Act 1993 by the Pensions Act 2007 are the “props” which will permit conversion. In this Alert, we outline the main requirements for trustees of defined benefit (DB) schemes considering GMP conversion (and the conditions which might affect their ultimate “game plan”).