Sackers checklist – GMP equalisation: Essential planning – the questions trustees need to ask – July 2021

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.

In this checklist we cover the following areas:

  • Laying the groundwork
  • Choosing the method
  • The sponsoring employer’s role
  • Transfers and lump sums post Lloyds No.1
  • Pensions tax
  • Communication and documentation
  • Appendix – defined terms and links to relevant guidance