The NAPF has urged the Government to drop its plans for new legislation on equalisation of Guaranteed Minimum Pensions. ‘GMP equalisation’ could increase pension schemes liabilities by as much as £13 billion, while adding £300 million of extra administrative costs.

The Government should publish its own legal advice in order to clarify the situation. There is some uncertainty over whether EU law actually requires equalisation of GMPs. The Government should sponsor a test case.

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