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GMP Equalisation

What is GMP Equalisation?

Following the Lloyds Banking Group Judgement 2018, pension schemes are required to equalise Guaranteed Minimum Pension (GMP) benefits for all members, with a number of approaches provided for trustees to use. 

Schemes now need to recalculate benefits over a large time period and will need to determine the most appropriate approach for their scheme. Consideration must also be given to the potential adjustment of future and past transfer values. 

How This Impacts You

Impacted schemes are obliged to amend their benefits in broadly one of two ways (or a combination of both):

The scheme holds two records for each member (one based upon male GMP and one based upon female GMP), compares each record year on year and pays the higher of the two as pension to that member. There are a number of acceptable variants to this approach.

The scheme undertakes an exercise to convert GMP into non-GMP benefits. This approach enables more straightforward ongoing administration.

How We Can Help

Heywood Consulting’s team of legislative and calculation experts can help you with your GMP Equalisation exercise. We will work with closely with you to ensure that you can identify all impacted members and equalise their benefits in a fair and consistent manner. We can help with:

Data extract, cleansing and analysis.

New data views to allow you to hold GMP Equalisation data in a clear and consistent way.

Tools to help you to populate the new data views in bulk.

Updating your benefit calculations so that GMP Equalisation is built in automatically for any future calculations.


Our solutions will reduce administrative impact – incorporating automated calculations and processes, customers will be able to confidently administer their schemes on an equalised basis, whichever method they choose.