On the go: Buck claims it has completed the industry’s first ‘standalone’ guaranteed minimum pension equalisation project.
The successful exercise, undertaken on behalf of the Vaillant Group Pension Scheme, found 60 per cent of scheme members required an annual pension uplift and received an average of £125 a year, with back payments averaging £900 but, in some cases, reaching as high as £10,000.
Equalisation was completed for 4,500 pensioners through conversion and took 18 months, during which a full data audit and cleansing exercise was undertaken.
It marks the conclusion of the industry’s first ‘standalone’ equalisation project, meaning one that was not completed by an existing service provider. It was also the sector’s first large-scale GMP equalisation exercise undertaken with no direct link to an insurance transaction, the consultancy stated.
Buck said the successful resolution proved that trustees can complete GMP projects “as business as usual” and are not “tied to their current providers”.
It said that this shows that there is an opportunity to “drive competitive pressure and efficiency” in the market for GMP services, shortening project durations, reducing fees, and improving member outcomes.
David Piltz, UK managing director at Buck, said: “GMP equalisation is a complex and time-consuming task, but this doesn’t mean that schemes should wait to act, especially when their strategic journey requires the project to be completed sooner rather than later.
“As our work with the Vaillant scheme shows, GMP equalisation exercises concern material amounts of money for individuals and we’re delighted to have brought these long overdue benefits to the members of the Vaillant Group Pension Scheme.”
Steve Tickner, pensions manager at the Vaillant scheme, added: “Buck was selected by the trustees after a comprehensive review process, and the key to the project’s success has been the collaborative approach taken by Buck, the scheme trustees, and the trustees’ existing advisers.
“We are grateful for the support and commitment from Buck to satisfy our vision, as well as the focus and attention that they have brought to their work for Vaillant. Their dedication has helped us to keep the scheme on track with our other key projects, which is only possible now that the benefits for pensioners have been equalised.”
