Overview

This bill amends existing pension legislation to clarify and streamline the process of converting Guaranteed Minimum Pensions (GMPs) within pension schemes. It aims to simplify the rules around GMP conversion, ensuring fairness and consistency across different types of pension arrangements.

Description

The bill primarily modifies the Pension Schemes Act 1993 and related legislation in England, Wales, Scotland, and Northern Ireland. Key changes include:

• Redefining GMP Conversion: The bill provides a clearer definition of "GMP conversion," specifically addressing how schemes should be amended to remove GMP rules for both earners and their survivors (widows, widowers, or surviving civil partners).
• Simplifying Conversion Conditions: The bill revises the conditions under which GMP conversion can take place, aiming to make the process simpler and more efficient.
• Removing Redundant Provisions: Certain sections of existing legislation related to survivors' benefits are removed as they are deemed redundant or inconsistent with the proposed changes.
• Clarifying Procedural Requirements: The bill clarifies the roles and responsibilities of employers and trustees during the GMP conversion process.
• Addressing Transfer Out: The bill provides rules for adjusting cash equivalents during pension transfers where GMP conversion hasn't yet taken place.
• Amendments to other Acts: The bill also makes amendments to the Pensions Act 2007, the Marriage (Same Sex Couples) Act 2013, and the Pension Schemes Act 2015 for consistency and to remove outdated provisions.

Government Spending

The bill does not directly specify any changes to government spending. The impact on government finances is likely to be indirect, potentially related to administrative costs associated with implementing the new regulations and any adjustments to pension scheme liabilities. Precise figures are not provided in the bill.

Groups Affected

• Pension Scheme Members: The bill directly impacts members with GMPs, potentially affecting their pension benefits and the process of transferring their pensions.
• Pension Scheme Trustees: Trustees will need to adapt their processes and practices to comply with the amended legislation.
• Employers: Employers sponsoring pension schemes may face adjustments to their administrative responsibilities regarding GMP conversion.
• Government Departments: Departments responsible for pensions administration will need to update their guidelines and regulations to reflect the changes introduced by the bill.

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