A survey of pension professionals has found that 49% believe that most defined benefit (DB) schemes will miss the April 2016 deadline for producing accurate assessments of their members’ guaranteed minimum pension (GMP) rights.
The deadline is due to the phasing out of the state second pension, or SERPS, with the government passing responsibility to DB schemes to administer contracted out rights and to ensure that scheme members are paid the correct GMPs. To do this, schemes need to match their records to HM Revenue & Customs data, which means that they need to have accurate GMP rights assessments by April 2016. The survey was commissioned by information specialist EDM Group, and Lee Foord, associate director of EDM Pensions Data Services, said: “Many trustees may be unsure of what all the changes mean and are putting off decisive action, but it is ultimately their responsibility to ensure that the members’ GMP data is reconciled ahead of the April 2016 deadline. They will either be unaware of, or have underestimated, the labour and cost involved in the administration of this process, especially where the data is contained in physical formats.”