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

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Modified Method (2): Opposite sex calculation – applicable to a femalePre 97 Pension at Date of LeavingThe Pre 97 Deferred Pension at date of leaving = £2,187.50 pa is unchanged. However,the split of the different NPA tranches into GMP and excess pension has changed asfollows:Service Dates NPA Total Pensionat date of leavingPost 88 GMPmade up of:Excess pension01/01/1992 – 20/12/1994 60 £1,233.74 pa £462.49 pa £771.25 pa21/12/1994 – 05/04/1997 65 £953.76 pa £357.53 pa £596.23 paTotal n/a £2,187.50 pa £820.02 pa £1,367.48 paWhere the equivalent Female GMP at date of leaving is:NPA 60 tranche = 392.41 x 1.1786 = £462.49 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)Pre 97 Pension revalued to the Relevant Time (age 58)NPA 60 tranche8462.49 *1.0625 771.25*1.181 £1,662.01paNPA 65 tranche8357.53*1.0625 596.23*1.181 £1,284.84 pawhere:18.1% = Occupational Pensions (Revaluation) Order 2004 for 7 year revaluation period8 revaluations are granted to the female GMP at 6/4/1998 - 6/4/2005 inclusive71
Simplified Statutory Minimum Test for NPA 60 tranche of Pre 97 pensionMaximum(1) “all female GMP” with revaluation on the GMP; and(2) Accrued pre 97 pension with NPA 60+ GMP revaluation on “all female GMP”+ revaluation on the “revised excess pension” with NPA 60 or lower(1) “all female GMP” with revaluation on the GMP= 820.02 x 1.0625 8 = £1,331.85 pa(2) Accrued Pre 97 pension with NPA 60+ GMP revaluation on “all female GMP”+ revaluation on the “revised excess pension” with NPA 60 or lower= 1,233.74 + 511.83 + 74.88 = £1,820.45pa (maximum)where:GMP revaluation on “all female GMP” = 820.02 x (1.0625 8 – 1) = £511.83 parevaluation on “revised excess pension” with NPA 60 or lower= (1,233.74 – 820.02) x (1.181 -1) = £74.88paThere is insufficient pension in the NPA 60 tranche to meet the StatutoryMinimum of £1,820.45 pa that must be paid from age 60.As the Statutory Minimum applies, the remaining elements of pension with appropriaterevaluation (at excess rate) are then paid from NPA 65.NPA 65 Tranche revalued to the Relevant Time = 953.76 x 1.181 = £1,126.39paSummary of Pre 97 Pension at the Relevant TimePre 97 pension at RTMale£ paEquivalent Female£ paNPA 60 1,630.95 1,820.45NPA 65 1,260.83 1,126.39Total 2,891.78 2,946.84Note that in this example the total Pre 97 pension (£2,946.84) is unchanged from theopposite sex calculation prior to application of the Statutory Minimum. However, part ofthe Pre 97 pension has been upgraded to NPA 60 to meet the statutory requirement forfemales at NPA 60.The revised NPA 65 tranche = total revalued pension – minimum pension from age 60 =1,662.01 +1,284.84 – 1,820.45 = £1,126.40 pa72
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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
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 70 and 71: Deferred pensioner examplesThe exam
Page 74 and 75: Adjustment to Pension revalued to t
Page 78 and 79: Modified Method (2): Opposite sex c
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
Page 120 and 121: 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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