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Clifford Chance

Clifford Chance


High Court confirms schemes must equalise GMPs

30 October 2018

In this special edition of the UK: Pensions Update we consider the High Court's decision in the case of Lloyds Banking Group Pensions Trustees Limited.

In the judgment, which was handed down on Friday, the High Court has provided an answer to one of the oldest legal questions in pensions – whether schemes must equalise for the unequal effects of guaranteed minimum pensions (GMPs) – and its answer is a firm "yes".  The case also provides a clear steer as to how to equalise GMPs (using the lowest cost method). However, (a) it is not yet certain whether the case may be appealed and (b) whilst giving a clear headline answer, the judgment does not resolve all the outstanding issues in this area. Trustees and scheme employers will therefore need to seek legal advice about the precise implications for their own scheme.

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