Statement on Equalisation for GMPs AND the application of a ...

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Generalised formula for male deferred pensionersAdjustment to Pre 97 NPA 60 tranche(a) [ FGMP DOL x (FGMP_Revs DOL:RT - XS_Revs DOL:RT )- 60 MGMP DOL x (MGMP_Revs DOL:RT - XS_Revs DOL:RT ) ]= [ 282.86 x ( 3.5791 - 1.6240 )= 533.02– 0 x ( 3.6758 - 1.6240 ) ](b) ( FGMP DOL x FGMP_Revs DOL:RT ) –60DP RT= ( 282.86 x 3.5791 ) – 0= 1,012.38Choose the maximum of (a), (b)= £1,012.38 pa ie (b)Adjustment to Pre 97 NPA 65 tranche (negative)Complete (a) or (b) below, in line with the one which was used above:(a) - [ ( 65 MGMP DOL – Pre90_ 65 MGMP DOL ) Nox (MGMP_Revs DOL:RT - XS_Revs DOL:RT ) ]= - [ ( - )x ( - ) ]=(b) - [( 65 MGMP DOL - Pre90_ 65 MGMP DOL ) x (MGMP_Revs DOL:RT -XS_Revs DOL:RT )+ (FGMP DOL - 60 DP DOL ) x XS_Revs DOL:RT ] Yes= - [ ( 1,390.00 - 1,150.00 ) x ( 3.6758 - 1.6240 )+ ( 282.86 - 0 ) x 1.6240 ]= - £ 951.80 pa105
Pensioner examplesThese calculations assume that:1. pensioners have taken all their benefits from a single date of retirement;2. the scheme has taken into consideration the appropriate legislation applicable to themembers true sex in calculating pensioner benefits; and3. the scheme calculates early and late retirement pensions by applying a set ofactuarial factors to the members pension dependant on their age on retirement (asset out in section C.3).These calculations do not take into consideration any pension the member commuted onretirement. We are looking at the differences in the amounts payable to the member and anequivalent member of the opposite sex. As no further pension can be commuted this will notaffect the difference between these figures.As described in Part B.8 where a pensioner has taken early or late retirement from thescheme, as required by the preservation legislation, it is assumed that these benefits havebeen calculated taking into consideration the benefits the member would have been entitledto from NPA. Due to the different NPAs that apply to different elements of pension accruedduring the period 17/5/1990 – 5/4/1997 it is likely that members may have taken eitherearly or late retirement for at least part of their pension accrued during this period.Equalisation for GMPs and the application of the Statutory Minimum for pensioners thereforerequires separate calculations for tranches of pension with different NPAs since differenttreatment will have been applied by the scheme to pension accrued in different serviceperiods. For example a member retiring from a scheme at age 62 may have taken earlyretirement for the NPA 65 tranche of pension but late retirement for the NPA 60 tranche ofpension. This member will require 2 separate calculations using Form 3(a):1. a calculation for the NPA 60 tranche from which the member has taken lateretirement; and2. a separate calculation for the NPA 65 tranche where the member has taken earlyretirement.This scenario is illustrated in example 5 below.The adjustment to Pre 97 PPF compensation for pensioners at the Relevant Time requiresa separate calculation to be carried out for each NPA applicable to a member during theperiod 17/5/1990-5/4/1997.Examples 1-4 below consider the main scenarios that are expected to apply to differenttranches of pension for pensioners who have pension in excess of GMP. Example 5 thenillustrates how calculations for a member with 2 different NPAs in the period 17/5/1990-5/4/1997 should be carried out.Example 1 - Early retirement from the scheme;Example 2 - Late retirement from the scheme;Example 3 - Normal retirement from a scheme with NPA 60;Example 4 - Normal retirement from a scheme with NPA 65; and106
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If you have any questions regarding
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A.4 Section 143 valuation requireme
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Combining information from several
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A.6 Schemes not included in the pil
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B.1 BackgroundB.1.1 Content of Part
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B.3 Statutory requirements for cont
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B.5 Interaction of the statutory re
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greater, no further adjustment is r
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For actives, the application of the
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B.7.4 Typically male deferred pensi
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B.8.3 Back-paymentsWhere pensioner
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B.10 Back-paymentsB.10.1 Back payme
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(c) New Pensioners between the RT a
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C.1 Data requirementsFor members of
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C.3 AssumptionsThis section contain
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females joining the scheme after ag
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C.4 PPF Standard FormsThese forms c
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Form 1 - Active members at the Rele
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Generalised formula for male deferr
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Generalised formula for female defe
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1 MGMP 65 = 0 if the member is aged
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Pensioner Form 3(b) - GMP only case
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GMP pensioners - use this section i
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Age at DOR = DOR - DOB (years and m
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PLUS applicable to pensioners who h
Page 56 and 57: Calculation of Accumulated Back-pay
Page 58 and 59: Calculation of uplift at Relevant T
Page 60 and 61: Uplift in Pension at Date of Retire
Page 62 and 63: C.5 Examples of theoretical calcula
Page 64 and 65: Active Example 1. Male active membe
Page 66 and 67: Form 1 - Active members at the Rele
Page 68 and 69: Statutory minimum test for NPA 60 t
Page 70 and 71: Deferred pensioner examplesThe exam
Page 72 and 73: Modified Method (2): Opposite sex c
Page 74 and 75: Adjustment to Pension revalued to t
Page 76 and 77: Generalised formula for male deferr
Page 80 and 81: The revised NPA 65 tranche = total
Page 86 and 87: Adjustment to Pension revalued to t
Page 88 and 89: Generalised formula for female defe
Page 92 and 93: Factors used in the form 2(a) for E
Page 96 and 97: eing a late retirement pensioner fo
Page 98 and 99: Pensioner NPA 60 trancheThe member
Page 100 and 101: Factors used in the Pensioner Form
Page 102 and 103: 1 MGMP 65 = 0 if the member is aged
Page 104 and 105: Factors used in the Male Deferred P
Page 108 and 109: Example 5 - Member with tranches of
Page 110 and 111: Pre 97 Pension at Date retired from
Page 112 and 113: Back-paymentsThe member is entitled
Page 114 and 115: Pensioner Form 3(a) - not GMP only
Page 116 and 117: PLUS applicable to pensioners who h
Page 136 and 137: Pre 97 PPF compensation at Relevant
Page 142 and 143: Age at DOR = DOR - DOB (years and m
Page 146 and 147: Calculation of Accumulated Back-pay
Page 148 and 149: Pre 97 Pension at Date of LeavingPr
Page 150 and 151: 2.8% and 3% are UK Guaranteed Minim
Page 152 and 153: Factors used in the Form 3(a) for E
Page 154 and 155: 1 MGMP 65 = 0 if the member is aged
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Factors used in the Form 3(a) for E
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1 MGMP 65 = 0 if the member is aged
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Pensioner Example 6. Male pensioner
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Modified Method (2): Opposite sex c
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Factors used in the Form 3(b) for E
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May use instead of standard calcula
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Back-payments Form 4(b) - GMP only
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Uplift at Relevant Time (before app
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Calculation of Accumulated Back-pay
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D.1 Factors for calculating opposit
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D.2 Questionnaire to gather scheme
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Early retirement information15. Did
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Late retirement from either active
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NPAFGMP DOLFemale Deferred Pensione
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e.g. 65 MGMP DOL = male GMP at date
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65 to RTEnter 1 if pension does not
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