GMP equalisation: What should trustees and employers do now?
As explained in our earlier alert, the High Court has decided that trustees are under a duty to equalise for GMPs. But we don’t know yet whether the decision will be appealed or whether there will be a further ruling on the outstanding issues. At this stage, it seems unlikely that there will be an appeal: the employer has been quoted as saying that it “welcomes the decision”, the union has claimed it as a “win” and it would be very unusual for the trustees to appeal where the decision provides the certainty required to administer the scheme. However, we won’t know for sure until at least mid-November (and possibly not for some time after that).
What should trustees and employers of affected schemes be doing while we wait to see if the decision is the final word on GMP equalisation? We set out in this more detailed alert the steps trustees and employers should be taking now, and the areas they should be starting to think about. Note that the issue is relevant only to schemes which were contracted-out on a salary-related basis between 17 May 1990 and 5 April 1997.
Click here to read our more detailed alert.
For more information on any of the issues arising from the Lloyds case, please speak to your usual Linklaters contact.