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 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