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

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Pre 97 Pension at Date retired from schemePension revalued to age 65= (660.63 x 1.467) + (1,388.44 x 1.298) = £2,771.34 pawhere:46.7% = Social Security Revaluation of Earnings Factors Order 2003 for tax year 1994/9529.8% = Occupational Pensions (Revaluation) Order 2004 for 10 year revaluation period.Statutory requirements for male at age 65(a) Contracting-out legislationRevalued GMP at age 65 = 660.63 x 1.467 = £969.14 pa(b) Anti-franking and preservation legislation= pension accrued with NPA 65+ GMP revaluation on male GMP to age 65+ scheme revaluation to age 65 on excess pension= 2,049.07 + 660.63 x (1.467 - 1) + 1,388.44 x (1.298 - 1)= £2,771.34 paNo uplift required at age 65 to meet minimum legislative requirementsPre 97 PPF compensation at Relevant Time= 2,771.34 + 969.14 x (1.03 x 1.027 x 1.03 - 1) + (2,771.34–969.14) x (1.03 3 - 1)= £3,025.23 pawhere:3%; 2.7%; and 3% are UK Guaranteed Minimum Pension Increase Orders effective on 6April 2005, 2006 and 2007 respectively.133
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 schemePension revalued to age 65= 1,464.29 + (1,231.14 x 1.298) = £3,062.31 pawhere:29.8% = Occupational Pensions (Revaluation) Order 2004 for 10 year revaluation period.See (a) below for calculation of female GMP at age 65 allowing for statutory late retirementStatutory requirements for female at age 65It has been assumed the equivalent female would have consented to defer payment of GMPto age 65. The calculation makes allowance for the statutory late retirement factors thatapply to female GMPs after age 60 which adequately compensate for the postponement ofthe female GMP.(a) Contracting-out legislationRevalued GMP at age 65= 817.93 x 1.179 x (1+ 5x52/700)x(1.011x1.03x1.017x1.017x1.028)=£1,464.29 pawhere17.9% = Social Security Revaluation of Earnings Factors Order 1998 for tax year 1994/951.1%; 3%; ….. 2.8% are UK Guaranteed Minimum Pension Increase Orders effective on 6April 2000, 2001, .… 2004 respectively.(b) Anti-franking and preservation legislation= pension accrued with NPA 65+ GMP revaluation on female GMP to age 65+ scheme revaluation to age 65 on excess pensionThis is the same as the pension already calculated by the scheme at age 65 so no uplift isrequired.134
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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
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Statutory minimum test for NPA 60 t
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Deferred pensioner examplesThe exam
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Modified Method (2): Opposite sex c
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Adjustment to Pension revalued to t
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Modified Method (2): Opposite sex c
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The revised NPA 65 tranche = total
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Page 84 and 85: Modified Method (2): Opposite sex c
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 94 and 95: Generalised formula for male deferr
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 106 and 107: Generalised formula for male deferr
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
Page 168 and 169: Back-payments Form 4(b) - GMP only
Page 170 and 171: Uplift at Relevant Time (before app
Page 172 and 173: Calculation of Accumulated Back-pay
Page 174 and 175: D.1 Factors for calculating opposit
Page 176 and 177: D.2 Questionnaire to gather scheme
Page 178 and 179: Early retirement information15. Did
Page 180 and 181: Late retirement from either active
Page 182 and 183: 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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