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

i. Pensioners who are affected by the compensation cap;ii. The calculation of GMPs relating to different service periods by pro-rating post 88GMPs for part-time members, members with breaks in service, members who haveworked overseas, or anyone who doesn’t have a uniform accrual of GMP over theirperiod of service 5 April 1988 - 5 April 1997;viii. Members who left the scheme after age 60. The “later earnings addition” should beincluded in anti-franking minimum check for females and for males after they havean equivalent female GMP.iv. Members where it is unclear whether they will be better off remaining as the samesex or being treated as an equivalent member of the opposite sex. Cases can arisewhere members may be entitled to a larger amount of compensation payable fromage 60 but a smaller amount payable overall. Such cases are not expected to arisevery often.d) Proportionality considerationsOther factors the trustees should consider in making their decision are:i. The general quality of the scheme data;ii. If the more extensive data required to do more accurate calculations is available –this should include consideration of details of pensions paid to calculate any backpaymentssince the member retired; andiii. How significant the changes in compensation are likely to be.We expect that the proposed approach will be appropriate for the majority of schemesin assessment.A.5.3 Step 3 – Carry out the calculationsIt is expected that, once all the information has been collected, the adjustments can becalculated within approximately two months.A.5.4 Step 4 – Identify the basis that is most generous to the memberThe output from the standard proforma is an adjustment to the Pre 97 element ofcompensation payable from age 60 and 65 (or other NPA as appropriate).Typically as a result of the calculation members may get an increase in their Pre 97tranche payable from age 60 and a decrease in their Pre 97 tranche payable from age 65.In most circumstances as well as getting an increase from age 60, the total level ofcompensation payable will also increase.In certain limited circumstances the combined impact may be that a member will receivelower compensation overall but a larger proportion from age 60. In such circumstancesthe PPF early retirement factors in force at the Relevant Time should be used to determinethe sex that represents the best value to the member. The member's benefits shouldthen be recorded on that basis.A.5.5 Step 5 – Submit information to the PPFAll schemes transferring to the PPF are required to submit information on the PPF’sstandard data interface layout (“the DIL”). Having performed the necessary calculations,trustees will be able to complete the DIL with all information requested.10