The Pension Administration Standards Association has released its first guidance for pension schemes on GMP reconciliation.

The guidance states the importance of getting to grips with requirements sooner rather than later, and that schemes should reconcile their membership and GMP data with HMRC.

It also says that a rectification exercise will be required by most schemes as accepting HMRC data as correct is not necessarily an easy option.

Chair of the PASA GMP working party, Geraldine Brassett, said time is running out for schemes to get on board.

"The time left for administrators to act before the cessation is beginning to run short and there is increasing pressure on them to analyse what needs to be done, and to plan and deliver it."

"As the leading independent body in administration, we felt it was vital for us to lead the way in terms of helping these organisations to meet their deadlines and provide them with support and guidance."

The guidance was launched at a seminar in London attended by more than 100 industry experts.

The full Phase 1 of the Guidance is available on the PASA website and Phase 2 will be published during February.

Helen Forrest Hall, DB lead at PLSA, added: "For so long GMPs seemed so tame and we thought they could be left to revalue happily and undisturbed - then the Government radically reformed the State Pension and now we all have to reconcile.

"We know from talking to our own members that reconciliation is not a straightforward process and we are very keen to support them through this.

"We welcome the guidance published by PASA today and believe it is a valuable tool in helping trustees approach this complex and, at times, subjective process."

Helen Powell of Allen and Overy, the law firm that hosted the launch event, said: "It's vital given the scale and complexity of the task of reconciling and rectifying contracted-out benefits, that schemes are supported in taking a pragmatic and cost-effective approach that is also consistent with their trustee duties."

"This guidance will help trustees as they seek to develop an appropriate scheme-specific strategy."

First published 21.01.2016

Lindsay.sharman@wilmingtonplc.com