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 = £760.63 pa.The pension would have been uplifted to meet the female GMP at date of leaving.Scheme NPA Post 88 GMP Excess Pension Total Pension£ pa£ pa£ paNPA 65 817.93 0 817.93Equivalent 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= 1,365.76 x (1 - 0.03 x 2 3/12) = £1,273.57 pawhere:female 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.However the female member would have been entitled to receive her revalued GMPunreduced from age 62 9/12 as she was over the female GMP age of 60.Statutory requirements for female at age 62 9/12(a) Contracting-out legislationRevalued GMP at age 62 9/12 = £1,365.76 pa (see calculation above)This would be paid unreduced from age 62 9/12.(b) Anti-franking and preservation legislationSee comment for males above.Pre 97 PPF compensation at Relevant Time= 1,365.76 x (1.017x1.028x1.03x1.027x1.03 )= £1,555.73 pawhere:161