Equalisation meaning

THIS CHECKLIST APPLIES TO OCCUPATIONAL PENSION SCHEMES This checklist highlights the key actions involved in bringing an occupational pension scheme to a close—whether a defined benefit (DB) or defined contribution (DC) arrangement—and aligns with winding-up guidance from the Pensions Regulator (TPR). For fuller detail on these steps, see Practice Notes: Winding up a defined benefit (DB) occupational pension scheme; Winding up a defined contribution (DC) occupational pension scheme; and Winding-up an occupational pension scheme—statutory disclosure from 6 April 2014, reporting and record-keeping requirements. Data cleansing and reconciling records Once trustees decide to wind up the scheme, they should carry out a thorough data cleansing exercise. As this can be lengthy, it should, where practicable, be completed before formal winding-up starts. Where trustees cannot control the timing of the wind-up, cleansing and planning should begin as early as possible within the winding-up process. As part of the data cleansing exercise, trustees should: Check and reconcile member records. Where the scheme is a former contracted-out...

What is the background to the consultation? The consultation, ‘Local Government Pension Scheme in England and Wales: Access and fairness’, released on 15 May 2025, seeks to fundamentally enhance fairness in, and access to, the LGPS. It will examine five principal areas of concern: tackling survivor pensions and death grants reducing the gender pensions gap examining the high rate of opt-outs from the LGPS strengthening forfeiture provisions delivery of the McCloud remedy What is being proposed? The document explains that some proposals offer definitive resolutions to entrenched issues (for example, securing equal survivor benefit entitlement), while others begin longer-term work (including measures to reduce the gender pensions gap). We highlight two central reforms: revisions to survivor benefits and actions to improve the gender pensions gap. Survivor benefit entitlement Currently, survivors in same-sex marriages, survivors in same-sex civil partnerships, and female survivors of opposite-sex marriages and opposite-sex civil partnerships have pensions assessed on the member’s service from...

In this issue: Funding Pensions scams and litigation Contracting-out and equalisation Data Protection Daily and weekly news alerts New content Dates for your diary Trackers Funding Govt responds to Committee’s concerns about potential impact on open schemes from new DB funding regime The Work and Pensions Committee has posted on its website a letter from the Pensions Minister, Paul Maynard MP, replying to the Committee’s earlier correspondence of 19 July 2023 to the then Pensions Minister, Laura Trott MBE MP, which raised worries about the possible effects on open defined benefit schemes of the government’s proposed new DB funding framework. In his 18 December 2023 response, the Minister says there is no case for a separate regime for open schemes, which could enable inappropriate gaming, yet these schemes should not be driven into an unsuitable de‑risking path. He confirms the government will make clear in the updated draft Scheme Funding and Investment Strategy Regulations that...

Hymans Robertson, commenting on 8 July 2025 to the Ministry of Housing, Communities and Local Government (MHCLG) consultation, said the suite of proposals for the LGPS in England and Wales is positive, yet their rollout must be appropriately timed. MHCLG opened the consultation in May 2025, setting out a number of suggested reforms to the LGPS, such as making all maternity, shared parental and adoption absence automatically pensionable for scheme members. Whitehall also suggested revising the definition of child-related leave so staff can accrue pensionable pay during the final 13 weeks of the full 52-week period, which currently does not count towards pension. In addition, the package would confirm that any unpaid leave shorter than 30 days should be treated as ordinary pensionable earnings, alongside a range of other measures...

Contracting-out on a salary-related basis (also known as defined benefit (DB) contracting-out) was abolished on 6 April 2016. Before abolition, members of contracted-out salary-related (COSR) schemes could have built up one of two forms of contracted-out entitlement. In this Practice Note, these are collectively described as ‘contracted-out salary-related rights’ or, in short, ‘COSR rights’. Guaranteed minimum pensions (GMPs), being contracted-out rights built up before 6 April 1997 Section 9(2B) rights (also called post-1997 contracted-out salary-related rights or post-1997 COSR rights), being contracted-out rights built up between 6 April 1997 and 5 April 2016 The framework for transferring COSR rights is prescribed by the Contracting-out (Transfer and Transfer Payment) Regulations 1996, SI 1996/1462 (the Contracting-out Transfer Regulations). HMRC has issued guidance on transferring COSR rights. This Practice Note addresses transfers carried out after the end of DB contracting-out, namely on and from 6 April 2016. For material on transfers of COSR rights made prior to the abolition of DB contracting-out, see Practice...

What is the PCSPS? Until 30 September 2002, the Principal Civil Service Pension Scheme (PCSPS) was the only pension option for the civil service. From 1 October 2002, four distinct sections were introduced within the PCSPS: Classic (the 1972 Section), Classic Plus (a blend of Classic and Premium), Premium (the 2002 Section) and Nuvos (the 2007 Section). The first three operate on a final salary basis, whereas Nuvos is a career-average section. For further details on how these sections were established, see below. Subsequently, on 1 April 2015, a new arrangement, the Civil Service Pension scheme (CSP) alpha, was created to provide benefits on a career average basis. When alpha was brought in, the government acted to close the PCSPS to future accrual, subject to: the retention of a final salary link in the PCSPS for active members, meaning benefits earned in the PCSPS are calculated using final salary at the point of leaving the civil service rather than when active PCSPS membership ended... ...

This Practice Note concentrates on the matters that applied prior to 6 April 2016—the date on which salary-related contracting-out (often called DB contracting-out) was brought to an end—when buying out these contracted-out salary-related (COSR) entitlements: guaranteed minimum pensions (GMPs)—the benefits built up by COSR scheme members as a result of contracting out between 6 April 1978 and 5 April 1997 Section 9(2B) rights (also referred to as post-1997 COSR rights)—the benefits accrued by COSR scheme members as a result of contracting out between 6 April 1997 and 5 April 2016 The legislative requirements that applied differed according to whether the relevant contracted-out rights were GMPs or Section 9(2B) rights. For guidance on the buy-out considerations from 6 April 2016 for Section 9(2B) rights and GMPs, see Practice Note: Buying out Section 9(2B) rights and GMPs from 6 April 2016. For general issues relating to buy-outs, see Practice Note: De-risking—pension buy-outs and buy-ins. For information on the ending of DB contracting-out on 6 April...

1 Introduction We write to issue a joint instruction to you, an expert in financial remedy matters arising from [ divorce OR dissolution ] proceedings between [ client’s full name ], born on [ insert date of birth ], and [ spouse/civil partner’s full name ], born on [ insert date of birth ]. Your instruction is joint, from [ lead firm preparing letter ], acting for [ client’s full name ], and from [ name and address of spouse/civil partner’s solicitors ], [ telephone number and email of spouse/civil partner’s solicitors ], on behalf of [ spouse/civil partner’s full name ], on the clear understanding that your expert opinion will be independent of both parties. [ At the first appointment on [ date of first appointment ], District Judge [ name ], sitting in the Family Court at [ location ], made the following order: [ insert exact wording from order ]. ] The parties confirm that you are to be instructed jointly as the single joint expert...

FORTHCOMING CHANGE: Potential changes to Wills Act 1837 The Law Commission’s review of Wills delivered its final report on 16 May 2025, with Volume II setting out a draft bill intended to replace the Wills Act 1837. For further details on the proposals, including the published draft legislation, see Practice Note: Hot topic—modernising Wills and Modernising wills: Final Report Volume II: draft Bill for a new Wills Act. STOP PRESS: Abolition of non-dom regime and move to a residence-based IHT framework. Finance Act 2025 (FA 2025), which secured Royal Assent on 20 March 2025, enacts the end of the remittance basis of taxation and introduces a residence-based system from 6 April 2025. FA 2025 also replaces domicile as the key factor determining liability to inheritance tax. Revisions to the rules for establishing excluded property status Removal of protected settlements status for offshore trusts Amendments to overseas workday relief For guidance on these reforms, see Practice Notes: The abolition of...

Name: ________________________________ Date of Birth: ________________________________ Membership Number: __________________ National Insurance Number: ____________________ Company Name: ________________________ Address: ____________________________________ Date Joined Scheme: ___________________ Date of Leaving: ____________________________ To the Trustees of the [ insert name of scheme ] Pension Scheme (the ‘Scheme’). I have benefits within the Scheme and apply to move the value of those benefits from the Scheme as outlined below. This also covers any amounts that would be paid from the Scheme to my dependants or beneficiaries if I were to die. I confirm I have received a statement of entitlement for my Scheme benefits showing the cash equivalent transfer value (CETV) as at my guarantee date. I wish to transfer my benefits to the Receiving Arrangement(s) listed here: Name of Receiving Arrangement: ________________________________ Address of Receiving Arrangement: ________________________________ HMRC Registration Number: ________________________________ DECLARATIONS Decision to transfer out • The choice to transfer my benefits to the Receiving Arrangement is mine alone,...