GMP equalisation has long been the ‘elephant in the room’. Whether guaranteed minimum pensions should be equal for men and women, when the State pension they replace is not, is an issue that has, for one reason or another, remained unresolved in the 20 years since the Barber decision. That, however, looks set to change. Following Angela Eagle’s announcement in January of last year, the DWP is expecting, probably this autumn, to publish new draft legislation on the issue of GMP equalisation.
Archive for the ‘Benefit changes’ Category
Equalisation of guaranteed minimum pensions: a blessing or a curse?
Wednesday, 24 August 2011RPI to CPI: a good time to look at old pension increase changes too?
Tuesday, 24 May 2011In those halcyon days before section 67, and the regulatory impositions of the disclosure regulations, did changes to pension schemes seem to go more smoothly? Perhaps in those days of higher inflation a change to guarantee inflation-linked increases to pensions capped at, say, 5% seemed an improvement on fixed increases of, say, 3% per annum. And such changes may have applied to all service, future and past, as it was better, so impacting on pensions in payment and deferred pensions. But was everyone told about it? With pension increase rules in the spotlight at the moment following the Government’s switch from RPI to CPI, it’s a good time to check.
Losing the default retirement age – stuck with a normal pension age?
Thursday, 14 April 2011As is well known, employers have been able to retire employees at 65. The ability to do this is now removed for most employees under employment legislation (from 6 April 2011 or 1 October 2011 if the employee had already been given notice of imminent retirement). So many of our clients are starting to face up to the challenges which they will face from a potentially aging workforce. Pensions are obviously a key issue.
Pension scheme rules – when’s a discretion not a discretion?
Monday, 21 February 2011When drafting pension scheme rules I sometimes think a client is looking for an easy option on a difficult decision and I find myself warning that what seems like an easy option now may turn out to be far more complex and exposed to member claims. The scope of the employer’s duty towards members when it comes to discretionary benefits is much greater than people think. You will doubtless have heard about the duty of good faith.
RPI/CPI for pension schemes – the story continues
Friday, 4 February 2011The move from the retail prices index (RPI) to the consumer prices index (CPI) for revaluing pensions in deferment and increasing pensions in payment has dominated my work in January. So no apologies for returning to the subject again for the third time after Däna Burstow’s thoughts on the initial announcement and Helen Powell’s comments on the underlying actuarial issues. (more…)
