PPF consults over solution to equalise benefits for GMPs

The lifeboat fund said it had to ensure that equal compensation is paid to comparable male and female members of schemes whose employers have gone bust and have transferred into the scheme.

It said it had developed a PPF-specific solution to make sure men and women receive the same overall compensation where it would otherwise have been unequal due to differences in guaranteed minimum pensions, primarily brought about by differences in state retirement age.

PPF director of financial risk Martin Clarke said: "We believe we have come up with a workable solution tailored to pension schemes being assessed for entry into the PPF now and in the future. This is something we have to do by law.

"We are determined to ensure that ours is a pragmatic solution which will minimise the extra burden we know this is likely to place on trustees as they take their schemes through the assessment process. We have strived to strike the right balance between the cost of achieving this solution and ensuring fairness for all our members. We now want to hear people's views on our proposed way forward."

The PPF will be consulting on its solution during the next three months before finalising its proposals.

Since 1990, occupational pension schemes have had a legal obligation, similar to that of the PPF, to equalise compensation for men and women.

Differences caused by guaranteed minimum pensions are one aspect of this.