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

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Example 5 - Member with tranches of benefit at NPAs 60 and 65.The adjustments required to PPF compensation for each of these examples should becalculated using the Pensioner Form 3(a).Example 6 illustrates the calculation for a pensioner receiving pension equal to his GMPonly at the Assessment Date. This scenario should be modelled using the separatePensioner Form 3(b).Both the Forms 3(a) and 3(b) calculate the change in Pre 97 PPF compensation for aPensioner at the Relevant Time. Pre 97 PPF compensation receives no increases after theRelevant Time. The changes calculated can therefore be entered onto the PPF DataInterface Layout as the changes needed to Pre 97 compensation at the Transfer Date.The amounts allow for the application of the 90% multiplier if appropriate but not thecompensation cap.Forms 3(a) and 3(b) may be used for both males and females.Forms 4(a) and 4(b) for calculating back-payment may be used for both males andfemales.The calculation of back-payments using the forms has only been illustrated for example 4(form 4(a)) and example 6 (form 4(b)).The small differences illustrated by the forms and the exact calculations are due to roundingof the factors input into the forms.107
Pensioner Example 1. Male pensioner retired early from schemeTimelineAge62549/12 6567Date ofleaving(DOL)Date retiredfrom scheme(DOR)SchemeNPARelevantTime(RT)Membership DetailsDate of Birth = 8 February 1940Date joined scheme = 1 January 1992Date of leaving the scheme = 8 January 1995Date retired from scheme = 1 November 2002 (age 62 9/12 (nearest month)*)Normal retirement date = 8 February 2005 (age 65)Assessment Date = 2 May 2007Relevant Time (RT) = 1 May 2007 (age 67)The scheme provided revaluation on the pension in deferment at the following rates: Fixed Rate Revaluation on GMP (in this case 7% pa) Statutory revaluation on the excess pensionThe scheme paid the following rates of increase on pensions in payment between retirementand the Relevant Time: 0% pa on Pre 97 excess pension Statutory increases on Post88 GMP awarded every 6 AprilThe scheme calculated early retirement pensions by applying an early retirement factor tothe pension revalued to date or early retirement. The early retirement factor was 3% pasimple (*calculated using the members age calculated to the nearest month).Pre 97 Pension at Date of LeavingDeferred Pension at date of leaving = £2,049.07 pa split into GMP and excess elements asfollows:Scheme NPA Post 88 GMP Excess Pension Total Pension£ pa£ pa£ paNPA 65 660.63 1,388.44 2,049.07108
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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
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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 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
Page 156 and 157: 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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