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

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