Reviving a stalled GMP reconciliation project

When our client's guaranteed minimum pension (GMP) reconciliation project came to a standstill in 2021, our Pensions Executive Management Service (PEMS) team stepped in to breathe new life into the initiative and drive it to completion.

The challenge

Our client faced a significant hurdle in progressing its GMP reconciliation project. The initiative had stalled in 2021, with little movement since then, leaving over 950 cases requiring reconciliation. This delay was impeding the client's ability to move forward with crucial next steps, including rectification and equalisation.

Our client needed expert assistance to:

• Review the current status of the GMP reconciliation.
• Collate information and suggest a way forward.
• Provide support for completing the reconciliation.
• Finalise the entire GMP reconciliation process.

The solution

Our PEMS bespoke projects team was appointed to take on this challenge, leveraging their strong project management skills and extensive experience with GMP projects. The team implemented a strategic approach:

• Focused on moving the project forward rather than dwelling on past delays.
• Engaged with administrators to determine the best path for progress.
• Developed a comprehensive GMP reconciliation summary report.
• Presented clear, actionable insights to the Governance and Audit Sub-Committee (GAC) and trustee boards.
• Facilitated regular catch-up meetings and worked directly with Railpen to resolve remaining GMP queries.

The team's GMP reconciliation summary report was particularly well-received, praised for its clarity and ease of understanding. This allowed the trustees to make informed decisions on remaining cases efficiently.

The outcome

Our intervention resulted in significant positive outcomes:

• Successfully completed the GMP reconciliation project by September 2023.
• Provided a clear path for the trustee to make decisions on outstanding cases.
• Enabled the scheme administrators to complete the End of Reconciliation Report.
• Received high praise from the client, including positive feedback from the acting finance director.
• Paved the way for our client to begin planning for GMP rectification.

The client praised the PEMS team's expertise, efficiency, and clear communication throughout the project. The successful completion of this long-standing initiative has positioned them to move forward with confidence in their pension scheme management.