XPS Pensions Group launch EqualGMP service for pension schemes
XPS Pensions Group (XPS) has today launched EqualGMP, a service specifically designed to help trustees and in-house administrators with GMP equalisation. EqualGMP provides a robust planning, preparation and implementation service, ensuring pension schemes can effectively navigate the GMP equalisation journey.
Following the Lloyds Banking Group court case in 2018, all pension schemes are required to equalise benefits between men and women to allow for the unequal treatment of Guaranteed Minimum Pensions (GMPs). For many schemes and employers this has been an unwelcome change that has introduced uncertainty, complexity and an additional burden and cost on running a pension scheme.
XPS believe that, undertaken in the right way, GMP equalisation can result in improvements to the running of pensions schemes and lead to cost savings and less complexity.
EqualGMP is a new service helping schemes achieve the best possible outcomes from GMP equalisation. The service enables pension schemes to improve their member data, simplify their wider benefits, offer the opportunity to introduce new options to members and provide a clear path to long-term objectives. It starts with a preparation phase of five key steps, which together will ensure schemes are prepared to deal effectively with GMP equalisation and make the most of that journey.
Sankar Mahalingham, Principal at XPS Pensions Group, said: “The court ruling last year has caused a lot of pension schemes to worry about being GMP ready and quite rightly. It can take months for pension schemes to be in a position to even start their equalisation journey and even though we are waiting for further clarification on some equalisation options, now is the time to start preparing.
“We feel this is actually a good opportunity for trustees to improve the running of their schemes and EqualGMP is all about helping pension schemes prepare and implement plans to not only manage their GMP equalisation process but to also provide a clearer outlook to the long-term benefits of their scheme.”
Sankar continued: “Our specialist team has managed over 20 bespoke GMP equalisation projects and are experienced in managing the complexities these exercises can bring. As part of the EqualGMP service, we can work with schemes through some or every step of the process from the preparation to the communication and implementation. Our new service will help make the work needed for GMP equalisation improve the running of pension schemes.”