The Pension Protection Fund (PPF) has announced that its method of calculating compensation for men and women under the Guaranteed Minimum Pension (GMPs) method will apply to all schemes in its assessment.

With its pilot project for how it is to conduct its GMP calculation method complete, the PPF has stated that trustees will be notified about the changes and how it will affect them.

Schemes which are scheduled to transfer to the PPF before 31 May 2013 will not have to do GMP calculations in line with PPF methodology. The PPF will do these calculations. For schemes were transfer is not expected until after 1 June 2013, GMP calculations under the PPF methodology will be completed before transfer.

PPF chief operating officer David Heslop commented: “It has been a long and complex process, involving many of our stakeholders, to come up with the most satisfactory approach for our needs and also meet our legal obligations. I would like to thank all those schemes who took part in the pilot as their efforts mean we are confident that we can apply the method to all schemes successfully.”

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