Defined Benefit  

Pension payouts delayed as HMRC struggles through data

"The whole episode has been a shambles. This will create an even longer period of limbo for DB schemes already wrestling with how to implement GMP equalisation."

The High Court ruling, which concerned the Lloyds bank scheme, is considered a solution for a pension problem spanning almost three decades.

Schemes will have to decide how to equalise the contracted-out benefits of their members.

One of the solutions being considered by schemes is converting the GMPs into a normal scheme benefit. But the problem with this, from a member's perspective, is that it will likely uplift the value of their pension, which could trigger an annual or lifetime allowance tax charge.

maria.espadinha@ft.com

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