Independent MP proposes private member’s bill on GMP conversion

Independent MP, Margaret Ferrier, has proposed a private member’s bill to amend and clarify existing guaranteed minimum pension (GMP) conversion legislation.

Introducing the bill to the House of Commons last week, the member for Rutherglen and Hamilton West said the bill was chosen to try and help “reassure occupational pension schemes that they are able to use the methodology published in Department for Work and Pensions (DWP) 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.

Ferrier continued: “Historical inequalities of treatment between men and women in the pension system have long resulted in uneven amounts being paid out as GMPs in occupational pension schemes to men and women.

“This bill will begin to rectify these persisting issues.”

LCP partner and head of GMP equalisation, Alasdair Mayes, said the introduction of the bill was “great news”.

“It has been known for several years that the GMP conversion legislation has some rough edges,” he stated.

“And survey after survey shows that GMP conversion, in some shape and form, is preferred by many as a means to equalise benefits for GMPs over the administratively complex ‘dual record’ approaches.

“Hopefully this bill will iron out the rough edges in the conversion legislation.”

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