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

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Pre 97 Pension at Date retired from scheme (age 62 3/12)Scheme method is to revalue pension to age 60 and then apply a late retirement factor.Late retirement pension at age 62 9/12= [(660.63 x 1.07 5 ) + (1,388.44 x 1.147)] x (1.09 2.25 ) = £3,058.13 pawhere:14.7% = Occupational Pensions (Revaluation) Order 1999 for 5 year revaluation period5 revaluations are granted to the male GMP at 6/4/1995-6/4/1999 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 from age 65.(b) Anti-franking and preservation legislationThe Trustees will have taken into consideration these pieces of legislation in setting thecalculation of the member’s late retirement pension. As this scheme uses unisex lateretirement factors it is assumed that the Trustees’ late retirement factors and method tookinto account the statutory requirements relating to both males and females. No furthercheck is therefore required.Pre 97 PPF compensation at Relevant Time= 3,058.13 + 1,214.54 x (1.03 x 1.027 x 1.03 - 1)= £3,166.89 pawhere:3%; 2.7%; and 3% are UK Guaranteed Minimum Pension Increase Orders effective on 6April 2005, 2006 and 2007 respectively.117
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. or calculating opposite sex GMP)Pre 97 Pension at Date retired from scheme (age 62 3/12)Scheme method is to revalue pension to age 60 and then apply a late retirement factor.Late retirement pension at age 62 3/12= [(817.93 x 1.07 4 ) + (1,231.14 x 1.147)] x 1.09 2.25 = £3,015.82 pawhere:14.7% = Occupational Pensions (Revaluation) Order 1999 for 5 year revaluation period4 revaluations are granted to the female GMP at 6/4/1995-6/4/1998 inclusiveStatutory requirements for female at age 62 3/12(a) Contracting-out legislationRevalued GMP at age 62 3/12= [817.93 x 1.07 4 ] x [(1 + (2x52+11)/700) x (1.011x1.03x1.017)]1,072.14 x 1.23302 = £1,321.97 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.Female GMP minimum is clearly covered at retirement.(b) Anti-franking and preservation legislationSee comment for males above.Pre 97 PPF compensation at Relevant Time= 3,015.82 + 1,321.97 x (1.017x1.028x1.03x1.027x1.03 - 1)= £3,199.70 pawhere:1.7%, 2.8% … 3% are UK Guaranteed Minimum Pension Increase Orders effective on 6 April2003, 6 April 2004 - 2007 respectively.118
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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
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C.5 Examples of theoretical calcula
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Active Example 1. Male active membe
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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 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 156 and 157: Factors used in the Form 3(a) for E
Page 160 and 161: Pensioner Example 6. Male pensioner
Page 164 and 165: Factors used in the Form 3(b) for E
Page 166 and 167: 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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