GMP Equalisation Working Group shares 'FAQ' guidance

The Pensions Administration Standards Association (Pasa) has published guidance on the frequently asked questions (FAQs) that arise during the guaranteed minimum pensions (GMP) equalisation process.

The guidance is designed to help administrators implement GMP equalisation solutions by providing pragmatic guidance on good practice, based on the collective view of the cross-industry GMP Equalisation Working Group (GMPEWG).

In particular, it includes questions and answers on whether the ‘look-back’ approach in assessing crossover points is appropriate, PAYE tax considerations on the payment of arrears and interest, and the practicalities of equalising death benefits.

It also considers the impact of GMP equalisation on commutation, and checking whether underpaid members receiving arrears or increases exceed the Lifetime Allowance.

GMP Equalisation Working Group chair, Geraldine Brassett, explained that this first instalment includes initial FAQs, confirming that it will be updated and added to as the implementation of GMP equalisation projects progress and different approaches and solutions emerge.

The document is the latest in a range of guidance produced by the GMPEWG, including guidance on transitioning GMP reconciliation data, anti-franking guidance, and communications guidance.

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