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

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C.5 Examples of theoretical calculationsThe following examples illustrate how theoretically correct calculations could be carriedout for a variety of cases. These examples have been chosen to illustrate some of thedifferent features of the calculations. They are not intended to cover every scenario but toprovide stakeholders with sufficient background on how the calculations work.The calculations also demonstrate how the input figures that are used in the standardforms have been derived.For actives and deferred pensioners the calculations illustrate the adjustment required tothe pension revalued to the Relevant Time.For pensioners the calculations illustrate the change in PPF compensation from theRelevant Time. They also show a year by year comparison of the pension for a male andfemale prior to the Relevant Time to enable the calculation of any underpayments.Each of the calculations has then been run through the appropriate PPF standard form forthat category to illustrate how the PPF standard forms could be used.Full details of each calculation are given at the start of each section. However, the tablebelow provides some information on where to find the sample calculations and thestandard forms used.Status ofmember atRelevant TimeBrief DescriptionFormsusedActive 1. Male – NPAs 60 and 65 1 642. Female – NPA 62 1 67Deferred 1. Male – NPAs 60 and 65 (large NPA 60 element) 2(a) 71pensioner 2. Male – NPAs 60 and 65 (small NPA 60 element) 2(a) 773. Female – NPA 62 2(b) 834. Male – NPA 65 2(a) 895. Male – Age 62 at RT, NPA 60 and 65 2(a) & 3(a) 95Pensioners 1. Male – early retirement, NPA 65 3(a) 1092. Male – late retirement, NPA 60 3(a) 1173. Male – normal retirement , NPA 60 3(a) 1254. Male – normal retirement , NPA 65 3(a) & 4(a) 1335. Male, retired at age 62 NPAs 60 & 65 3(a) x two 1476. Male – GMP only 3(b) & 4(b) 160Page61
Active examplesThe examples below illustrate the calculations required to adjust active members Pre 97pension at the Relevant Time on the PPF standard data interface layout (DIL). Allcalculations and adjustments relate to Pre 97 pensions before the application of thecompensation cap and 90% multiplier, as these are applied when the member retires.Post 5 April 1997 pension cannot be used to meet the requirements for equalisation forGMP or the application of the statutory underpin. The examples therefore only considerthe calculation of Pre 97 elements of pension at the Relevant Time.Example 1 – Male with periods of service with NPAs 60 and 65(with insufficient NPA 60 service to cover female GMP)Example 2 – Female over age 60 at the Relevant Time with NPA 62 service only62
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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
Page 12 and 13: A.6 Schemes not included in the pil
Page 14 and 15: B.1 BackgroundB.1.1 Content of Part
Page 16 and 17: B.3 Statutory requirements for cont
Page 18 and 19: B.5 Interaction of the statutory re
Page 20 and 21: greater, no further adjustment is r
Page 22 and 23: For actives, the application of the
Page 24 and 25: B.7.4 Typically male deferred pensi
Page 26 and 27: B.8.3 Back-paymentsWhere pensioner
Page 28 and 29: B.10 Back-paymentsB.10.1 Back payme
Page 30 and 31: (c) New Pensioners between the RT a
Page 32 and 33: C.1 Data requirementsFor members of
Page 34 and 35: C.3 AssumptionsThis section contain
Page 36 and 37: females joining the scheme after ag
Page 38 and 39: C.4 PPF Standard FormsThese forms c
Page 40 and 41: Form 1 - Active members at the Rele
Page 42 and 43: Generalised formula for male deferr
Page 44 and 45: Generalised formula for female defe
Page 46 and 47: 1 MGMP 65 = 0 if the member is aged
Page 48 and 49: Pensioner Form 3(b) - GMP only case
Page 50 and 51: GMP pensioners - use this section i
Page 52 and 53: Age at DOR = DOR - DOB (years and m
Page 54 and 55: PLUS applicable to pensioners who h
Page 56 and 57: Calculation of Accumulated Back-pay
Page 58 and 59: Calculation of uplift at Relevant T
Page 60 and 61: Uplift in Pension at Date of Retire
Page 64 and 65: Active Example 1. Male active membe
Page 66 and 67: Form 1 - Active members at the Rele
Page 68 and 69: Statutory minimum test for NPA 60 t
Page 70 and 71: Deferred pensioner examplesThe exam
Page 72 and 73: Modified Method (2): Opposite sex c
Page 74 and 75: Adjustment to Pension revalued to t
Page 80 and 81: The revised NPA 65 tranche = total
Page 86 and 87: Adjustment to Pension revalued to t
Page 88 and 89: Generalised formula for female defe
Page 92 and 93: Factors used in the form 2(a) for E
Page 96 and 97: eing a late retirement pensioner fo
Page 98 and 99: Pensioner NPA 60 trancheThe member
Page 100 and 101: Factors used in the Pensioner Form
Page 102 and 103: 1 MGMP 65 = 0 if the member is aged
Page 104 and 105: Factors used in the Male Deferred P
Page 108 and 109: Example 5 - Member with tranches of
Page 110 and 111: 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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Pre 97 PPF compensation at Relevant
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Age at DOR = DOR - DOB (years and m
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Calculation of Accumulated Back-pay
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Pre 97 Pension at Date of LeavingPr
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2.8% and 3% are UK Guaranteed Minim
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Factors used in the Form 3(a) for E
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1 MGMP 65 = 0 if the member is aged
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Factors used in the Form 3(a) for E
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1 MGMP 65 = 0 if the member is aged
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Pensioner Example 6. Male pensioner
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Modified Method (2): Opposite sex c
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Factors used in the Form 3(b) for E
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May use instead of standard calcula
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Back-payments Form 4(b) - GMP only
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Uplift at Relevant Time (before app
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Calculation of Accumulated Back-pay
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D.1 Factors for calculating opposit
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D.2 Questionnaire to gather scheme
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Early retirement information15. Did
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Late retirement from either active
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NPAFGMP DOLFemale Deferred Pensione
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e.g. 65 MGMP DOL = male GMP at date
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65 to RTEnter 1 if pension does not
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