GMP Equalisation (GMPE): New PASA Guidance on Communicating with Members
29th September, 2021
The Pensions Administration Standards Association (PASA) has published new GMPE Communications guidance. Later this week, it will also be publishing new guidance on GMPE and Anti-Franking.
The Communications Guidance
The webinar for the launch of the Communications guidance included a presentation from The Pensions Regulator. TPR now expect trustees to have “a clear path to GMP equalisation”, including: a decision made on methodology; ‘booking-in’ with an administrator (i.e. making sure resource is available); getting data sorted; and communicating with members.
The guidance itself covers seven different areas (as illustrated below, in a slide from Monday’s presentation).
Some key points to note are:
- There is a reminder of key principles for communicating (based on earlier PASA guidance).
- A call to “Put the individual at the centre of your thinking”, with help on how to do this (including a ‘change curve’ showing the possible member reaction to change in a GMPE context).
- Tips on timing of communications.
- Guidance on “Who to Communicate with” (e.g. leaving out those who are unaffected by GMPE) and segmentation of members, with lots of example sentences provided.
- Planning for data to use in communicating, including an ‘interactive data planning checklist’.
- A remind that “it is time to get this done”!
Whilst trustees may still ask their lawyers to review their GMPE comms, PASA’s latest guidance should give them and their administrators the confidence and practical help that they need to draft and/or review the member communications for the implementation stage of GMPE. There is also a checklist for post-equalisation considerations (e.g. BAU communications such as booklets, benefit statements and retirement quotations).