UK professional services firm Aon has warned pension schemes not to wait for government guidance about the additional costs of guaranteed minimum pensions (HMRC) and begin preparing now. In a survey, the firm revealed 75% of respondents had estimated the HMRC liability increase, but only 5% had a fully implementable plan. Separately, a Willis Towers Watson study said 78% of firms were looking at converting HMRC into other benefits, while 57% of trustees said up to two years was needed for equalisation.
UK professional services firm Aon has warned pension schemes not to wait for government guidance about the additional costs of guaranteed minimum pensions (GMP) and begin preparing now. In a survey, the firm revealed 75% of respondents had estimated the GMP liability increase, but only 5% had a fully implementable plan. Separately, a Willis Towers Watson study said 78% of firms were looking at converting GMP into other benefits, while 57% of trustees said up to two years was needed for equalisation.