Lloyds GMP equalisation case to appear before High Court
Trustees Agenda posted on 9 July, 2018
A case concerning three female members of the Lloyds Banking Group pension scheme is to appear before the High Court. The members claim they were subject to sex discrimination with respect to how the Guaranteed Minimum Pension (GMP) was calculated for contracted-out members between 1990 and 1997.
At that time, GMP was calculated upon the assumption that women would receive their state pension five years earlier than men. The High Court has been asked to decide whether the scheme's trustees need to equalise the treatment of GMPs, and if so, if this should be done in a particular way or if it is a matter of trustee discretion.
Industry sources estimate that the potential cost to Lloyds could be between £100m and £500m should the court rule in favour of the members. It is thought that the cost of equalisation across all contracted-out pension schemes could be up to £20bn. The hearing is expected to last two weeks and a ruling later in the year.