The Pensions Administration Standards Body has released its third tranche of guidance on GMP reconciliation, which covers the approach to reconciliation for scheme members entitled to a GMP who were active members when contracting-out ended in April 2016.

The guidance is a key part of PASA’s commitment to “equip and empower” its member organisations with all they need to best serve clients. PASA GMP working party chair Geraldine Brassett said: “This phase seeks to help with the reconciliation for schemes for this additional stage of the overall reconciliation process. This is particularly timely as HMRC have recently started providing data for these active members.”

“Following the abolition of DB contracting out, any member who had an open period of contracted out service has now been automatically contracted back in with an effective date of 06/04/2016. As well as undertaking the reconciliation process for active members it is also important to ensure that the GMP is reconciled for any members with a GMP who left active membership between the date the GMP reconciliation information for deferred and pensioner members was provided and the 6th April 2016.”

In addition, PASA GMP working party member Matt Ashton-Smith said: “Our latest guidance takes PASA members through the various steps they need to go through in order to support what HMRC expects them to do at this point. We will continue to monitor issues in relation to GMP reconciliation and rectification, publishing further guidance on new developments or specific issues when relevant.”

Full details of the third phase of PASA’s GMP Guidance and contents of phase one and two, are available on the PASA website.

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