The GMP Equalisation Working Group has published further guidance on how schemes can communicate the complex subject of GMP equalisation to members.
This latest guidance particularly focuses on the implementation of these communications and the broad principles that should be followed.
The new guidance was launched during a series of PASA webinars focussing on different elements of the GMP Equalisation journey as part of GMP equalisation week.
It advises schemes that the need to take into account the member’s perspective, the normal context of other scheme communications, timing communications activity and delivery milestone, who to communicate with, and what to tell them, as well as planning for data to use and post-equalisation considerations for ‘business as usual’ communications.
The GMPEWG is a communication sub-group of PASA and has previously published guidance detailing early planning stages of the communications process in August 2020.
Willis Towers Watson senior director communications & change management, and chair of the sub-group Louise Harris says: “Communicating the complex subject of GMP equalisation to individuals in a clear and transparent way is a vital element in a scheme’s equalisation project.
“This second instalment of communications guidance places the individual at the centre of our thinking and simplifies a technical subject to support trustees and administrators where they’re starting to communicate with members and deliver equalisation.
“Many schemes have suffered setbacks in the progression of their GMP equalisation projects due to the impact of Covid-19, but the message from The Pensions Regulator and from PASA today is clear – let’s get this done for the members. GMP equalisation may be very complicated, but your communications don’t have to be.”
Aon partner Lynda Whitney adds: “The PASA guidance highlights the importance of focusing on what the member truly needs to know about the situation, and the advantages of layering information for those who want to know more. GMP equalisation is a topic where you may actively want to give the member early permission to disengage.
“We have found that a simple letter is very effective for pensioners, supported by a website with more information about the project, and a second layer for those who want to know the detail of their impact on their tax position.
“Where you want members to engage is where they have to make a choice. So, for example, if you are doing GMP Equalisation through conversion, alongside a Pension Increase Exchange exercise, it is important you focus on the choices they have, rather than the detail behind them. Do they want Pension A or Pension B? And how do they contact the IFA to get more support?.”
Pension schemes were forced to equalise their GMP benefits following a landmark case in the high court.