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

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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
1.7%, 2.8% … 3% are UK Guaranteed Minimum Pension Increase Orders effective on 6 April2003, 6 April 2004 - 2007 respectively.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 anytime shown in red.Annual rate of pensionwith effect from:MaleEquivalentFemale£ paShortfall£ pa£01/10/2002 1,000.00 1,365.76 365.76*06/04/2003 1,000.00 1,388.98 388.9806/04/2004 1,000.00 1,427.87 427.87*08/02/2005 1,214.54 1,427.87 213.33*06/04/2005 1,250.98 1,470.71 219.7306/04/2006 1,284.75 1,510.41 225.6606/04/2007 1,323.30 1,555.73 232.43*01/05/2007** 1,323.30 1,555.73* Would need to be pro-rated for the relevant periods** From Relevant Time no further comparison necessaryIncrease in Pre 97 PPF compensation at the Relevant Time= 1,555.73 – 1,323.30 = £232.43 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(b) below.Form 4(b) has then be used to determine the back-payments due covering the period fromDate of Retirement to the Relevant Time.162
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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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The revised NPA 65 tranche = total
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Adjustment to Pension revalued to t
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Generalised formula for female defe
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Factors used in the form 2(a) for E
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eing a late retirement pensioner fo
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Pensioner NPA 60 trancheThe member
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Factors used in the Pensioner Form
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1 MGMP 65 = 0 if the member is aged
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Factors used in the Male Deferred P
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Example 5 - Member with tranches of
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Pre 97 Pension at Date retired from
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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 154 and 155: 1 MGMP 65 = 0 if the member is aged
Page 156 and 157: Factors used in the Form 3(a) for E
Page 158 and 159: 1 MGMP 65 = 0 if the member is aged
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
Page 184 and 185: e.g. 65 MGMP DOL = male GMP at date
Page 186: 65 to RTEnter 1 if pension does not
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