Response to the GMP equalisation ruling
26 Oct 2018
Matt Davis, Partner at Hymans Robertson responds to the High Court decision today (26 October):
“The UK’s defined benefit schemes and trustees in the UK have more clarity from today’s ruling. Members should welcome the decision, as we expected millions of people will get extra pension as a result. However, allowing a single method that would have fixed the issue in one calculation has been ruled out by the judgment.
"Instead the calculations are being done on a year-by-year and case-by-case basis which will mean the ruling will have an impact on the industry for several decades. The complexity that will follow, in selecting and implementing the most appropriate method of equalisation will bring with it a series of additional costs that schemes will have to accommodate. The additional expenses of providing a higher pension for many members than previously allowed for will also have a sizable impact on future cash requirements for some schemes.”