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

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Back-paymentsThe member is entitled to the higher payment that would have been made to a member ofeither sex before the Assessment Date. The table below shows the annual rate of pensionfor the male and equivalent female with the higher figures at any time shown in red.Annual rate of pensionwith effect from:MaleEquivalentFemale£ paShortfall£ pa£01/11/2002 2,618.61 2,656.96 38.35*06/04/2003 2,618.61 2,680.18 61.5706/04/2004 2,618.61 2,719.07 100.4606/04/2005 2,655.05 2,761.91 106.8606/04/2006 2,688.82 2,801.61 112.7906/04/2007 2,727.37 2,846.93 119.56**01/05/2007*** 2,727.37 2,846.93* Would need to be pro-rated for the period 1/11/2002 – 06/04/2003** Would need to be pro-rated for the period 6/4/2007 – 01/05/2007*** From Relevant Time no further comparison necessaryIncrease in Pre 97 PPF compensation at the Relevant Time= 2,846.93 – 2,727.37 = £119.56 paAt the Relevant Time the member would be better off being treated as a female member.The change in Pre 97 PPF compensation for this example has been illustrated using thestandard Pensioner Form 3(a) below.111
Factors used in the form 3(a) for Example 1 have been calculated as follows:(Note calculation of the factors not used in the calculation hasn’t been shown.)All factors have been calculated to 4 decimal places.SI DOR:RTIncreases on Pre 97 excess pension from Date of Retirement toRelevant Time= 1SI 65:RTIncreases on Pre 97 excess pension from age 65 to Relevant Time= 1GI DOR:RTIncreases on post 88 GMP from Date of Retirement to Relevant Time= 1.017 x 1.028 x 1.03 x 1.027 x 1.03= 1.1391GI 65:RTIncreases on post 88 GMP from age 65 to Relevant Time= 1.03 x 1.027 x 1.03= 1.0895XS_Revs DOL:DORRevaluation on excess Pension from Date of Leaving to Date ofRetirement= 1.2050MGMP_Revs DOL:DORRevaluation on male GMP from Date of Leaving to Date of Retirement= 1.07 8 = 1.7182FGMP_Revs DOL:DORRevaluation on female GMP from Date of Leaving to Date ofRetirement= 1.07 4 x FLR 60:DOR= 1.07 4 x 1.2739 = 1.6698FLR 60:DORIncreases on female GMP from age 60 to Date of Retirement, ifapplicable= [(1 + (2 x 52 + 38)/700) x (1.011 x 1.03 x 1.017)]=1.2739ERFScheme early retirement factor at DOR(3% pa simple, age calculated to the nearest month)= 1 – (0.03 x 2.25) = 0.9325LRFScheme late retirement factor at DOR, not applicable= 1.0112
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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
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Calculation of uplift at Relevant T
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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 114 and 115: Pensioner Form 3(a) - not GMP only
Page 116 and 117: PLUS applicable to pensioners who h
Page 120 and 121: Back-paymentsThe member is entitled
Page 128 and 129: Back-paymentsThe member is entitled
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 156 and 157: Factors used in the Form 3(a) for E
Page 160 and 161: 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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