The High Court has issued a further judgment in the Lloyds Bank case, concerning “method D” (an actuarial value test rather than a year-by-year benefit test), used for converting GMPs into non-GMP pension. This confirms that:
- for pensions in payment, payments to date must be equalised using one of methods A, B or C before method D can be applied;
- method D can then be used to compare unequalised male and female future benefits and conversion can then take place using the higher of those two values;
- under method D there is no requirement to allow for interest at base rate plus 1% pa simple as used in methods A, B and C.
We still await a hearing to clarify the treatment of transfers.