Opperman tells schemes to equalise GMPs now

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Pensions and financial inclusion minister Guy Opperman has warned pension schemes need to begin the process of equalising guaranteed minimum pensions now.

The High Court ruled in October 2018 that unequal GMP payments were unlawful. 

“It’s been six months since we published our guidance, and it is time for pension schemes to act to equalise GMP payments," he said.

“People need certainty and clarity when it comes to their retirement income. Companies should be taking steps towards equalisation such as correcting records and deciding upon a preferred methodology.”

GMPs are a result of contracting out from the state pension system, which is no longer possible.