You may have seen reports in the news about the recent High Court ruling regarding the Lloyds Bank pension schemes.

The court ruled that pension schemes will have to increase benefits for certain members, so as to eliminate inequalities between men and women attributable to Guaranteed Minimum Pensions (GMPs). This process is called ‘GMP equalisation’.

If you were an Active member (employed by the Company and accruing pension entitlement within the DB Section) for any period of time between May 1990 and April 1997, your Scheme benefits may be affected by this ruling and as a result may be subject to a small increase. No member’s benefits will be reduced as a result of this court ruling.

If you were not an Active member for any period between May 1990 and April 1997, your benefits are not affected by this court ruling.

The Trustee is currently working with its advisers to determine how to carry out GMP equalisation, as are the trustees of many other UK pension schemes. The process is complex and may be affected by future developments – for example, further court proceedings (including any appeal of the Lloyds Bank ruling) or guidance or legislation from the Government. Accordingly, it is likely to be some time before the Trustee is in a position to start adjusting benefits.

Further updates will be posted to the Scheme website over time and if your benefits require adjustment the Trustee will write to you confirming the increase and when it will take effect. You are not required to take any action at this stage.