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

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Deferred pensioner examplesThe examples below illustrate the calculations required to adjust the deferred pensionersPre 97 pension at the Relevant Time on the PPF standard data interface layout. 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 97 pension cannot be used to meet the requirements of equalisation for GMP or theapplication of the Statutory Minimum. The examples therefore only consider thecalculation of Pre 97 elements of pension at the Relevant Time.Example 1 – Male with periods of service with NPAs 60 and 65(with sufficient NPA 60 service to cover female GMP at DOL)Example 2 – Male with periods of service with NPAs 60 and 65(with insufficient NPA 60 service to cover female GMP at DOL)Example 3 – Female with NPA 62 service onlyExample 4 – Male with pre 17/5/1990 service at NPA 65 and small amount of post17/5/1990 service at NPA 60Example 5 - Male greater than age 60 with NPA 60 and NPA 65 serviceThe adjustments required to Pre 97 pension at the Relevant Time for each of theseexamples should be calculated using the deferred pensioner forms appropriate to themember’s sex. Namely:Form 2(a) for male deferred pensioners; andForm 2(b) for female deferred pensioners.The small differences illustrated by the forms and the exact calculations are due torounding of the factors input into the forms.69
Deferred Example 1. Male deferred pensioner at the Relevant TimeTimelineAge 58516065Date ofleaving(DOL)RelevantTime(RT)SchemeNPA 1SchemeNPA 2Membership DetailsDate of Birth = 5 December 1946Date joined scheme = 1 January 1992Date of leaving the scheme = 31 December 1997Assessment Date = 2 July 2005Relevant Time (RT) = 1 July 2005 (age 58 years)Pre 97 Pension at Date of LeavingPre 97 Deferred Pension at date of leaving = £2,187.50 pa which has been split intotranches NPA 60 and NPA 65 (based on service dates) as follows:Service Dates NPA Total Pensionat date of leavingPost 88 GMPmade up of:Excess pension01/01/1992 – 20/12/1994 60 £1,233.74 pa £392.41 pa £841.33 pa21/12/1994 – 05/04/1997 65 £953.76 pa £303.35 pa £650.41 paTotal n/a £2,187.50 pa £695.76 pa £1,491.74 paThe scheme provided revaluation on the pension in deferment at the following rates: Fixed Rate Revaluation on GMP (in this case 6.25% pa) Statutory revaluation on the excess pensionPre 97 Pension revalued to the Relevant Time (age 58)NPA 60 tranche8392.41*1.0625 841.33*1.181 £1,630.95 paNPA 65 tranche8303.35*1.0625 650.41*1.181 £1,260.83pawhere:18.1% = Occupational Pensions (Revaluation) Order 2004 for 7 year revaluation period8 revaluations are granted to the male GMP at 6/4/1998 - 6/4/2005 inclusive70
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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
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 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 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
Page 114 and 115: Pensioner Form 3(a) - not GMP only
Page 116 and 117: PLUS applicable to pensioners who h
Page 118 and 119: 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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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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