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

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Active Example 1. Male active member at the Relevant TimeTimelineAge 586065RelevantTime(RT)SchemeNPA 1SchemeNPA 2Membership DetailsDate of Birth = 5 December 1946Date joined scheme = 1 January 1994Assessment Date = 2 July 2005Relevant Time (RT) = 1 July 2005 (age 58 years)Pre 97 Pension at the Relevant TimePre 97 Pension at the Relevant Time = £1,262.19 pa which has been split into tranchesNPA 60 and NPA 65 tranches (based on service dates) as follows:Service Dates NPA Total Pensionat date of leavingPost 88 GMPmade up of:Excess pension01/01/1994 – 20/12/1994 60 £308.43 pa £98.10 pa £210.33 pa21/12/1994 – 05/04/1997 65 £953.76 pa £303.35 pa £650.41 paTotal n/a £1,262.19 pa £401.45 pa £860.74 paModified Method (2): Opposite sex calculation – applicable to a femalePre 97 Pension at the Relevant TimeThe Pre 97 Deferred Pension at the Relevant Time = £1,262.19 pa is unchanged.However, the split of the different NPA tranches into GMP and excess pension has changedas follows:Service Dates NPA Total Pensionat date of leavingPost 88 GMPmade up of:Excess pension01/01/1994 – 20/12/1994 60 £308.43 pa £115.62 pa £192.81 pa21/12/1994 – 05/04/1997 65 £953.76 pa £357.53 pa £596.23 paTotal n/a £1,262.19 pa £473.15 pa £789.04 paWhere the equivalent Female GMP at date of leaving is:NPA 60 tranche = 98.10 x 1.1786 = £115.62 paNPA 65 tranche = 303.35 x 1.1786 = £357.53 pa(1.1786 is taken from the table in Part D.1 for calculating opposite sex GMP)63
Statutory minimum test for NPA 60 tranche of Pre 97 PensionFor a male member this is the equivalent female GMP accrued 17/05/1990 – 05/04/1997at the Relevant Time = £473.15 paThere is insufficient pension in the NPA 60 tranche to meet the statutoryminimum of £473.15 pa that must be paid from age 60.Part of the Pre 97 pension with NPA 65 therefore needs to be upgraded to a NPA 60 tomeet the statutory requirement for females at NPA 60.Summary of Pre 97 Pension at the Relevant TimePre 97 pension at RTMale£ paEquivalent Female£ paNPA 60 £308.43 pa 473.15NPA 65 £953.76 pa 789.04*Total £1,262.19 pa 1,262.19*revised NPA 65 tranche = total pension – minimum pension from age 60= 1,262.19 – 473.15 = £789.04 paAdjustment to the Pension at the Relevant Time as currently shown on the PPFData Interface LayoutPre 97 pension at RTAdjustment to DIL£ paNPA 60 473.15 – 308.43 = +164.72NPA 65 789.04 – 953.76 = - 164.72Overall change 1,262.19 – 1,262.19 = 0The change in Pre 97 pension for this male example has been illustrated using Form 1.64
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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
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 62 and 63: C.5 Examples of theoretical calcula
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
Page 112 and 113: 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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Back-paymentsThe member is entitled
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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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