GMP conversion bill receives Royal Assent

The Private Member's Bill on guaranteed minimum pension (GMP) conversion has been granted Royal Assent and has become the Pensions Schemes (Conversion of GMPs) Act 2022.

The act, first introduced by Independent MP for Rutherglen and Hamilton West, Margaret Ferrier, aims to clarify and streamline the GMP conversion process by clarifying that conversion applies to both earners and survivors, and outlining which employers need to give consent.

It would also enable clarification of the minimum survivor’s pension required and remove the need to notify HMRC.

The bill, which was first introduced in June 2021, has received cross-party support and support from the government.

When initially introducing the Private Member's Bill, Ferrier said she chose bill to try and help “reassure occupational pension schemes that they are able to use the methodology published in Department for Work and Pensions guidance to level the effective differences between pension amounts paid out to men and women”.

Private member’s bills are introduced by 20 MPs that are drawn from a ballot each parliamentary session, with those drawn given the opportunity to bring forward legislation on a topic of their choice.

Commenting on the passage of the act, Pensions Minister, Guy Opperman, said: “I warmly welcome the passing of this act and commend Margaret Ferrier MP for introducing this valuable legislation.

“This will benefit many hard-working people across the country by helping pension schemes equalise the effects of GMPs between men and women.”

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