Solutions

GMP reconciliation

GMP is the minimum level of pension a scheme is required to pay to members who were contracted out of the State Earnings Related Pension Scheme prior to 6 April 1997.

GMP reconciliation is the comparison of membership and GMP figures between administrator and HM Revenue & Customs (HMRC) records. If GMP is recorded inaccurately, this means that pension payments can be incorrect. The process is complex and covers both under and over payments.

The abolition of contracting out for defined benefit schemes in 2016 is likely to require all schemes to reconcile their GMP liabilities.

The GMP reconciliation process is complex and time consuming. These projects can typically take anything up to two years to complete. HMRC are likely to be inundated with requests so now is the time to act.

Acting now will ensure that;

  • your scheme’s data complies with the Pension Regulator’s data checking guidance
  • members’ benefits are accurate
  • you can benefit from increased administrative efficiency

Veratta can guide you as well as undertaking these exercises on behalf of trustees.

Call us on 028 9041 2888 or email us to find out more.