UK Pensions Update

Consultation on Guaranteed Minimum Pension conversion Regulations

Schemes are to be able to convert Guaranteed Minimum Pensions ("GMPs") into other scheme benefits, provided that after conversion they are at least actuarially equivalent.

Trustees considering GMP conversion would need to:

• obtain employer consent and consult members;

• request reconciliation of HM Revenue and Customs ("HMRC") National Insurance data with scheme records;

• with actuarial advice, decide on actuarial assumptions for conversion;

• decide whether to commute part, or all, of the GMP and whether to include all members;

• ask the actuary to carry out the calculations and certify the actuarial equivalence;