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

Pre 97 Pension at Date retired from scheme (age 62 9/12)Scheme method is to revalue pension to date of early retirement and then apply an earlyretirement factorEarly retirement pension at age 62 9/12 (2.25 years early)= [(660.63 x 1.07 8 ) + (1,388.44 x 1.205)] x (1 - 0.03 x 2.25) = £2,618.61 pawhere:20.5% = Occupational Pensions (Revaluation) Order 2001 for 7 year revaluation period8 revaluations are granted to the male GMP at 6/4/1995-6/4/2002 inclusiveStatutory requirements for male at age 65(a) Contracting-out legislationRevalued GMP at age 65 = 660.63 x 1.07 9 = £1,214.54 paMinimum is clearly covered.(b) Anti-franking and preservation legislationThe Trustees will have taken into consideration pieces of legislations in setting thecalculation of the member’s early retirement pension. As this scheme uses unisex earlyretirement factors it is assumed that the Trustees’ factors and method took into account thestatutory requirements relating to both males and females. No further check is thereforerequired.Pre 97 PPF compensation at Relevant Time= 2,618.61 + 1,214.54 x (1.03 x 1.027 x 1.03 - 1)= £2,727.37pawhere:3%; 2.7%; and 3% are UK Guaranteed Minimum Pension Increase Orders effective on 6April 2005, 2006 and 2007 respectively.109