Defined Benefit  

Pension ruling to push members into advice

Mr Williams said the best practice would be for scheme trustees to take a case by case approach.

He said: "If the actuary considers it likely that GMP equalisation will tip a member over the £30,000 limit, trustees may wish to apply an adjustment to the transfer value (and then require them to take advice).

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"It may be tempting to simply apply a loading to all relevant transfer values over £29,000 to bump them over the limit. 

"However, care should be taken as the £30,000 threshold applies to the statutory minimum transfer value, and therefore it must be clear that any addition represents the ‘best estimate’ of the impact of GMP equalisation."

Sir Steve and Mr Williams agreed it would be most helpful to have some guidance from regulators on the impact of this court case.

Sir Steve said: "My view is that The Pensions Regulator, the Department for Work and Pensions, the Financial Conduct Authority, HM Treasury and HM Revenue & Customs should get together and tell people what on earth to do about GMPs, within reason. We do need consistency."

The FCA has been approached for comment.

Mr Williams added there was a third Lloyds judgment due in the Spring, which is expected to provide some information on transfers – so it was possible that some guidance would be provided then.