A specialist service has been launched by Broadstone to help pension trustees complete guaranteed minimum pension (GMP) equalisation projects within 18 months, aiming to break the "logjam" that has stalled progress for many schemes since the 2018 ruling.

'GMPE Now' was developed by Broadstone to offer a streamlined way for schemes to complete standalone GMP equalisation exercises, addressing what its creators describe as “stasis and prohibitive costs” that have affected the process for the past seven years.

This comes amid growing concern that many pension schemes are still “knowingly paying members the wrong benefits” seven years after a landmark court ruling required GMP equalisation, as EY-Parthenon pensions partner, Russell Laver, warned earlier this month.

With this in mind, the service is designed to integrate with any initial equalisation work already carried out and to collaborate with existing advisers to deliver a successful outcome.

Notably, Broadstone claimed it could take on schemes regardless of whether GMP data has been reconciled with HMRC or rectified on their administration systems, and that it was suitable for schemes of all sizes, including those preparing for risk transfer transactions.

The consultancy added that the new offering had been purpose-built to offer scalability and sensible pricing, which it said would provide a "simple and transparent" solution for schemes ranging from those with more than 10,000 members to those with fewer than 100.

Broadstone head of pensions, administration and advisory, Nigel Jones, said the complexity of GMP equalisation and the prevalence of “over-engineered” solutions had contributed to significant delays across the market.

“Now, seven years on from the original GMP ruling in October 2018, we feel it is imperative to deliver a solution that will help trustees achieve a successful outcome both in a definite time frame and in a cost-effective manner,” he continued.

“Our specialist team is ready to bring on virtually any scheme looking for a transparent solution.

"We pride ourselves on our first-class administration service, have a proven track record of onboarding new clients quickly and are willing to work collaboratively with existing advisers, leveraging on proven delivery right through to Lloyds 3 and award-winning hands-on market experience,” added Jones.

The new offering builds on work from the Government Actuary’s Department (GAD), which developed a modeller last year to support pension schemes as they worked towards fully equalising benefits for their members.

The modeller seeks to assess the individual member impact of equalising GMPs and the associated costs of addressing the inequalities.

---