GMP Equalisation Exercise

MarkCarnage

FIREDreamer said:

MarkCarnage said:

The cost/benefit for the lengthy and complex work involved in GMPE often for pretty small amounts has to be highly questionable. Sometimes the data quality is so poor that it's also questionable how accurate it is. 

Quite. One DB was increased by £10 a month (less than 3%), the other (larger one) did not change. How much time did these calculations take I wonder and at what cost.

I know from experience as a Trustee of a couple of very large schemes how much it has cost....and that money could have been much better spent elsewhere! It has taken two years and counting, and the cost is > £10m and still going up and that's just for one Scheme where I happen to know the number...and that's before allowing for in house management time. 
What's more some members get upset that they are getting nothing (because they are eligible for nothing) but their friend is getting a tenner a month more (different scheme, different circumstances). Some also don't 'get' the methodology and claim that they are being 'done' as some of their pension is now fixed rate not escalating....but they conveniently forget that the fixed rate starting point is a lot higher than their previous pension. 
The amount of money spent on situations created by idiotic legal judgements in recent years is mind boggling. At least WASPI got squashed though.....fell out with my former MP for daring to say us much! 

MABLE

MABLE said:

Mine was a GMP
rectification check.  The one checked increased my pension by £488 a year with a lump sum of £25,359.  I have asked my pension
provider for a full breakdown in years so I can decide to ask HMRC to recalculate the affected years.

I am still waiting for details on the affected years but payment made today.

I was advised in 1988 to come out of my final salary scheme by Lloyds bank but it turned out a bad move.  So I was put back in 1996 and had to be as if I never came out.  Perhaps this situation caused an issue with the GMP element?

Marcon

MABLE said:

MABLE said:

Mine was a GMP
rectification check.  The one checked increased my pension by £488 a year with a lump sum of £25,359.  I have asked my pension
provider for a full breakdown in years so I can decide to ask HMRC to recalculate the affected years.

I am still waiting for details on the affected years but payment made today.

I was advised in 1988 to come out of my final salary scheme by Lloyds bank but it turned out a bad move.  So I was put back in 1996 and had to be as if I never came out.  Perhaps this situation caused an issue with the GMP element?

You say 'still waiting' -  how long ago did you ask? Reinstatement isn't likely to have caused an issue, but the massive workload caused by the whole GMP equalisation exercise means anything and everything related to it takes a lot of time.

MABLE

BMarcon said:

MABLE said:

MABLE said:

Mine was a GMP
rectification check.  The one checked increased my pension by £488 a year with a lump sum of £25,359.  I have asked my pension
provider for a full breakdown in years so I can decide to ask HMRC to recalculate the affected years.

I am still waiting for details on the affected years but payment made today.

I was advised in 1988 to come out of my final salary scheme by Lloyds bank but it turned out a bad move.  So I was put back in 1996 and had to be as if I never came out.  Perhaps this situation caused an issue with the GMP element?

You say 'still waiting' -  how long ago did you ask? Reinstatement isn't likely to have caused an issue, but the massive workload caused by the whole GMP equalisation exercise means anything and everything related to receive the information in 7 working days. 

Letter just arrived and the affected years from 2006-2024 and underpayments were as high as £1400 a year and lowest £447 in year 2024.

They are still looking into the equalisation side of things.