The requirement under section 171 of the Pensions Act 2004 to equalise compensation to allow for differences in the GMP formula


Sacker & Partners LLP has submitted a response to the consultation of the Pension Protection Fund (PPF) on the “Requirement under section 171 of the Pensions Act 2004 to equalise compensation to allow for differences in the GMP formula”. The consultation closed on 28 July 2008. The method of calculating Guaranteed Minimum Pensions (GMPs) is set out in legislation and is different for men and women because GMPs are based on unequal state pension ages. The aim of the consultation was for the Board of the PPF to ask what steps it is appropriate for trustees to take, to enable the Board to meet its obligations under section 171 of the Pensions Act 2004. This requires the PPF to pay compensation on a basis that is no more or less favourable to a woman (or man) than it would be to a comparable man (or woman) in respect of service on after 17 May 1990 (the date of the Barber judgment).

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