A consultation on guaranteed minimum pension (GMP) equalisation has been launched today, as the government seeks to introduce regulations to reflect the European legal position on different treatment between men and women.

The Department for Work and Pensions has published draft regulations aiming to satisfy European legislation, which calls for the removal of state legislation that provides for unequal treatment between the sexes.

In circulating the proposal, the DWP is seeking to hear from stakeholders on whether the regulations would achieve the intended outcome, and receive comments around the methodology employed.

The department said that government has considered whether to heed suggestions that it sponsor a test case to ascertain whether there is an obligation to equalise for the effect of any inequality resulting from the GMP rules and, if so, how it should be achieved.

However, the government concluded this was not an “appropriate way forward”, saying a test case would only prolong the uncertainty around this issue. Further, given the clarity of the legal obligation to equalise for the effect of GMPs, government considered a test case would not take the matter any further forward.

Commenting on the announcement, the National Association of Pension Funds director of policy Darren Philp said the changes would be unwelcome news for pension funds.

“Pension schemes already have enough on their plate and the administrative headache this will create could not have come at a worse time. We will study the detail of what the DWP is proposing and play an active role in responding to its consultation,” he said.

The consultation ends on 12 April. Consultation documents are available on the DWP’s website here.

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