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

Modified Method (2): Opposite sex calculation – applicable to a femalePre 97 Pension at Date of LeavingDeferred Pension at date of leaving = £2,049.07 pa with revised split into GMP and excesselements as follows:Scheme NPA Post 88 GMP Excess Pension Total Pension£ pa£ pa£ paNPA 65 817.93 1,231.14 2,049.07Equivalent Female GMP at date of leaving = 660.63 x 1.2381 = £817.93 pa(1.2381 is taken from the table in Part D.1 for calculating opposite sex GMP)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)= [1,365.76 + (1,231.14 x 1.205)] x (1 - 0.03 x 2.25) = £2,656.96 pawhere:20.5% = Occupational Pensions (Revaluation) Order 2001 for 7 year revaluation periodfemale late retirement GMP at date retired ie 1/11/2002= [817.93 x 1.07 4 ] x [(1 + (2x52+38)/700) x (1.011x1.03x1.017)]= 1,072.14 x 1.27386 = £1,365.76 pa4 revaluations are granted to the female GMP at 6/4/1995-6/4/1998 inclusive1.1%; 3%; 1.7% are UK Guaranteed Minimum Pension Increase Orders effective on 6 April2000, 2001 and 2002 respectively.Statutory requirements for female at age 62 9/12(a) Contracting-out legislationRevalued GMP at age 62 9/12 = £1,365.76 paMinimum is clearly covered at retirement.(b) Anti-franking and preservation legislationSee comment for males above.Pre 97 PPF compensation at Relevant Time= 2,656.96 + 1,365.76 x (1.017x1.028x1.03x1.027x1.03 - 1)= £2,846.93 pawhere:1.7%, 2.8% … 3% are UK Guaranteed Minimum Pension Increase Orders effective on 6 April2003, 6 April 2004 - 2007 respectively.110