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Equalisation of Guaranteed Minimum Pensions (GMPs): what about transfers out?
18 December 2020
A further judgment from the High Court has clarified what pension schemes must do in relation to previous transfers out after 17 May 1990 (the date of the Barber decision) where the transferring member had a right to a guaranteed minimum pension (GMP).
It has been confirmed that:
- Transferring trustees are expected to revisit previous individual transfers under the cash equivalent transfer value (CETV) legislation and to pay a top up transfer value to the receiving scheme.
- Top ups should be paid in respect of unequalised CETVs paid from 17 May 1990 (the date of the Barber decision).
- In contrast, bulk transfers on a mirror image basis in accordance with the preservation legislation do not need to be revisited.
The judgment is the latest in long-running litigation concerning equalisation for the effects of GMPs and heard by Mr Justice Morgan. This note considers the judge's findings and explains our recommended approach to dealing with historic transfers.
To read the note, please click on the download button.
Authored by the pension team
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