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

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D.1 Factors for calculating opposite sex GMPThe scheme can calculate opposite sex GMP by applying a factor to the member’s originalGMP. Care needs to be taken where the male member is aged over 60 at the 6 Aprilpreceding the date of leaving the scheme to ensure that the GMP is adjusted to reflect thecessation of accrual of female GMP at that date. Similarly, for females allowance needs tobe made for any additional accrual of GMP applicable to males.The table below shows the factors to be applied for calculating opposite sex GMP, allowingfor the difference in post 88 GMP accrual rates for males and females.Dependent on the member’s date of birth.GMP Conversion FactorsDate of birth between Male to Female Factor Female to Male Factor(inclusive)Up to 05/04/1934 1.0000 1.000006/04/1934 05/04/1935 1.0500 0.952406/04/1935 05/04/1936 1.1000 0.909106/04/1936 05/04/1937 1.1500 0.869606/04/1937 05/04/1938 1.2000 0.833306/04/1938 05/04/1939 1.2500 0.800006/04/1939 05/04/1940 1.2381 0.807706/04/1940 05/04/1941 1.2273 0.814806/04/1941 05/04/1942 1.2174 0.821406/04/1942 05/04/1943 1.2083 0.827606/04/1943 05/04/1944 1.2000 0.833306/04/1944 05/04/1945 1.1923 0.838706/04/1945 05/04/1946 1.1852 0.843806/04/1946 05/04/1947 1.1786 0.848506/04/1947 05/04/1948 1.1724 0.852906/04/1948 05/04/1949 1.1667 0.857106/04/1949 05/04/1950 1.1613 0.861106/04/1950 05/04/1951 1.1563 0.864906/04/1951 05/04/1952 1.1515 0.868406/04/1952 05/04/1953 1.1471 0.871806/04/1953 05/04/1954 1.1429 0.875006/04/1954 05/04/1955 1.1389 0.878006/04/1955 05/04/1956 1.1351 0.881006/04/1956 05/04/1957 1.1316 0.883706/04/1957 05/04/1958 1.1282 0.886406/04/1958 05/04/1959 1.1250 0.888906/04/1959 05/04/1960 1.1220 0.891306/04/1960 05/04/1961 1.1190 0.893606/04/1961 05/04/1962 1.1163 0.895806/04/1962 or later 1.1136 0.8980173
The examples below illustrate how the opposite sex GMP at date of leavingmay be calculatedThe examples should be viewed as indicative only and do not cover all possiblescenarios1. Member under age 60 at 5 April preceding date left the schemeMale memberEquivalent female GMP = Male GMP x Male to Female Factor (from Table D.1)Female memberEquivalent male GMP = Female GMP x Female to Male Factor (from Table D.1)The adjustment allows for difference in GMP accrual rates between males and females.2. Member over age 60 at 5 April preceding date of leavingCalculations may need to allow for:(a) difference in GMP accrual rates between males and females;(b) different periods that GMPs accrue over; and(c) different rates of revaluation that would apply.For example a male member aged 62 at date of leaving the scheme; which was before6/4/1997. The male GMP would still have been accruing when he left service, howeverthe female GMP would have ceased accruing at the 5 April prior to age 60.MaleDate of birth = 01/10/1934Date joined scheme = 01/01/1985Date of leaving = 01/10/1996 (age 62)5 April preceding age 60 = 05/04/1994Post 17/5/1990 GMP at date of leaving = £360 paEquivalent female GMP = 360 x 1.0500 x(3 + 10.5/12)/(6 + 4.5/12x (1.1950/(1.031x1.044x1.028)) =£248.14 pawhere:(a) 1.0500 is factor from table D.1 to allow for different GMP accrual rates(b) 05/04/1994 – 17/05/1990 = 3 years 10.5 months(female post 90 accrual)01/10/1996 – 17/05/1990 = 6 years 4.5 months(male post 90 GMP accrual)Adjust by (3 + 10.5/12)/(6 + 4.5/12) to allow for the female GMP accrual ceasingat 5 April prior to age 60.(c) GMPs increases in line with s148 orders whilst the member is in service under GMPAge; this would have applied to the male as under age 65 and is included in thepost 17/05/90 GMP calculated at date of leaving. The last 3 years s148revaluations need to be removed to adjust the GMP to the tax-year 1993/1994.3.1%, 4.4% and 2.8% are S148 revaluation orders 6 April 1994, 1995 and 1996.The equivalent female member is over GMP Age 60 at date of leaving the scheme andwould have received statutory late retirement on the GMP from ages 60 to 62. Femalestatutory late retirement age 60-62= [(1 + (2x 52)/700) x (1.018 x 1.022)] =1.19501.8% and 2.2% are UK GMP Increase Orders for 6 April 1994 and 1995 respectively.174
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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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Back-paymentsThe member is entitled
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Pensioner Form 3(a) - not GMP only
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PLUS applicable to pensioners who h
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Pre 97 Pension at Date retired from
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Back-paymentsThe member is entitled
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Pensioner Form 3(a) - not GMP only
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Page 136 and 137: Pre 97 PPF compensation at Relevant
Page 138 and 139: Pensioner Form 3(a) - not GMP only
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 162 and 163: Modified Method (2): Opposite sex c
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 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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