Thousands of former members of the Final Salary Pension Scheme have lined up for financial incentives following a landmark High Court ruling on historical gender inequality.
In 2018, the High Court declared the payment of various “guaranteed minimum pensions” to men and women illegal. As a result, trustees were instructed to equalize GMP benefits by leaving the business with a bill of about 10 10 billion.
On Friday, the High Court extended the ruling to include former scheme members who transferred their GMP benefits to other pension plans after 1990, meaning they too will now be entitled to recalculate their payments.
As a result, one million people may need to check their benefits, according to pension experts.
“This is a far-reaching verdict, which will probably affect thousands of people with a guaranteed minimum pension and add costs to the business,” said Tom Eorth, Akon’s actual agency.
“One in four migrants may be at the top of their pensions as a result.”
The aquarium firm, Tower Watson, said any compensation would be paid as a pension top-up and in some cases could range from a few thousand pounds to as much as 30,000.
The GMP is the minimum pension that their employers had to provide to members of the final pay scheme who were contracted from the State Second Pension from 1977 to 1997.
Or historically, GMPs for men and women were allowed to increase at different rates each year, reflecting the fact that male and female state pension age groups were not equal at the time.
The trustees said many schemes could fight to comply with Friday’s ruling, which is only from 1990 to 199. Applicable to GMPs acquired within a year, if required to track ex-member records.
“From now on, they will have to hunt down data to recalculate transfers outside of schemes, as in the 1990s,” said Adrian Kennett, a professional trustee at the Dalarida Trustee.
“This is another painful day for the GMP equation – the systems and processes of administration are really going to be tested.”
Lawyers say it is difficult for employers to estimate the cost of the new verdict, as the 2018 ruling is already leaning towards financial injury.
The 2018 verdict came as a result of a lawsuit filed against Lloyds Banking Group Pension Trustee Lloyds Banking Group. Lloyds Banking Group said in a statement that it welcomed Friday’s decision, which clarified the GMP equation.