Sackers checklist – GMP equalisation: Correcting the past – the questions trustees need to ask

Back in 2018, Mr Justice Morgan held in Lloyds No.1 that schemes are under a duty to equalise for the effect of GMPs. More recently, with Mr Justice Morgan once again at the helm, the High Court concluded in Lloyds No.3 that, in certain cases, trustees owe a duty to make a transfer payment reflecting the member’s right to equalised benefits.

Whilst the judgments to date have helped to clarify a number of issues, some essential questions remain unanswered. Industry guidance is aiming to bridge some of those gaps.

This checklist, the second in a short series, sets out key questions and actions that trustees
of occupational pension schemes should be considering to help correct the past.

In this checklist we cover the following areas:

  • Essential planning – a quick recap
  • Correcting past benefits
  • Historic transfers pre-dating Lloyds No.1
  • Pensions tax
  • Arrears and limitations on claims
  • Appendix – defined terms and links to relevant guidance