This case study looks at how true teamwork is the secret ingredient to a faster, smoother, cheaper Guaranteed Minimum Pension Equalisation (GMPE) project.
On 26 October 2018, a high-court ruling meant that all GMP benefits must be equalised for male and female members which affected the majority of UK Defined Benefit schemes – those which contracted out of the State pension offering.
As a result, a review of all GMP benefits accrued between 17 May 1990 and 5 April 1997 is now required to help rectify any underpayments, including for those individuals who are no longer scheme members.
This is a significant project for trustees and their advisers, which includes:
> Extensive data work on historic records;
> Selecting the most appropriate calculation method, and;
> Communicating the complex work required to update members (when only some receive an uplift).
We identified an opportunity to pioneer a joined-up approach, allowing us to put our expertise to work to create efficiencies across multiple schemes whilst still maintaining bespoke services.
We set up a joint working group with the adviser with a dedicated 20-20 Trustees project manager who had oversight of the GMP equalisation work across our clients-in-common. The project manager maintains a comprehensive dashboard that summarises the individual progress of all schemes and highlights any outstanding decisions on each scheme.
This dashboard is supported with monthly project calls which play a critical role in providing focus, clarity and most importantly, momentum. Our structure has helped the adviser also identify a key contact who has an awareness of the overall progress of each of our schemes.
The results speak volumes. Feedback has been positive, and we have seen a reduction in adviser costs for the schemes involved, as the advisers have been able to offer a reduction of up to 10% due to streamlining efficiencies.
True teamwork is the key ingredient when it comes to moving complex projects forward quickly and efficiently. Teamwork is in the DNA of the 20-20 Trustees team; we work hard to bring out the best in those we work with to deliver value to each individual scheme.
With over 40 years-experience in trusteeship, 20-20 Trustees are an award-winning professional independent trustee organisation, committed to making a difference in the world of pensions. Whatever your trustee requirement, please get in touch today!