Guaranteed Minimum Pension: Rectification Exercise

In July 2018, the High Court issued a legal judgment involving Lloyds Bank stating that defined benefit pension schemes were under a duty to equalise Guaranteed Minimum Pension benefits for both men and women. This has been referenced in the Trustee Board’s Report and Accounts for several years, and the Scheme Actuary has accounted for an estimate of the impact in his funding valuations.

The Trustees have completed the necessary work to understand the impact on our members, and letters have recently been issued to those members impacted. We confirm these letters have been reviewed by the Trustees and we sought appropriate legal and actuarial advice on the appropriateness of the calculations. The letters provide more detail on the process followed, and the individual questions can be raised with the Scheme Administrator, Buck (a Gallagher Company) in the first instance.

If there are any concerns, the Chair is happy to speak individually to members.

Please find attached a factsheet with a list of frequently asked questions on this rectification exercise of affected members’ Guaranteed Minimum Pensions. This is the copy of the same factsheet that accompanied affected members’ letters sent in the post.