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

More documents

Recommendations

Info

Modified Method (2): Opposite sex calculation – applicable to a malePre 97 Pension at Date of LeavingThe Pre 97 Deferred Pension at date of leaving = £1,264.84 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 pension21/12/1994 – 05/04/1997 62 £1,264.84 pa £475.75 pa £789.09 paTotal n/a £1,264.84 pa £475.75 pa £789.09 paWhere the equivalent Male GMP at date of leaving is:NPA 62 tranche = 560.69 x 0.8485 = £475.75 pa(0.8485 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 tranche £0 paNPA 62 tranche8475.75*1.0625 789.09 *1.181 £1,704.61pawhere: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 inclusiveThis is less than the female Pre 97 pension revalued to the Relevant Time so thismember is better off remaining as a female member.However, a further check is needed to see if any change is needed to the femalePre 97 pension to ensure that the Statutory Minimum is met.83
Simplified Statutory Minimum Test for NPA 60 tranche of Pre 97 pensionMaximum(1) “all female GMP” with revaluation on the GMP; and(2i) 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= 560.69 x 1.0625 8 = £910.66 pa (maximum)(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= 0 + 349.97 - 101.48 = £248.49 pawhere:GMP revaluation on “all female GMP” = 560.69 x (1.0625 8 – 1) = £349.97 parevaluation on “revised excess pension” with NPA 60 or lower= (0 – 560.69) x (1.181 - 1) = - £101.48 paThere is insufficient pension in the NPA 60 tranche to meet the StatutoryMinimum of £910.66 pa that must be paid from age 60.At date of leaving there is no pension with NPA 60 to cover the female GMP. To avoiddouble counting the pension payable at 62 is reduced to reflect the GMP is now being paidfrom age 60.Revised 62 tranche at the Relevant Time = 704.15 x 1.181= £831.60 paSummary of Pre 97 Pension at the Relevant TimePre 97 pension at RTExisting Female£ paRevised Female£ paNPA 60 0 910.66NPA 62 1,742.26 831.60Total 1,742.26 1,742.26Note in this example the total Pre 97 pension is unchanged, However part of the Pre 97pension has been upgraded to a NPA 60 to meet the Statutory Minimum for females atNPA 60.The revised NPA 62 tranche = total revalued pension – minimum pension from age 60 =0 + 1,742.26 – 910.66 = £831.60 pa84
Page 5 and 6:
If you have any questions regarding
Page 8 and 9:
A.4 Section 143 valuation requireme
Page 10 and 11:
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 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 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 134 and 135:
Pre 97 Pension at Date retired from
Page 136 and 137:
Pre 97 PPF compensation at Relevant
Page 138 and 139:
Pensioner Form 3(a) - not GMP only
Page 140 and 141:
PLUS applicable to pensioners who h
Page 142 and 143:
Age at DOR = DOR - DOB (years and m
Page 144 and 145:
PLUS applicable to pensioners who h
Page 146 and 147:
Calculation of Accumulated Back-pay
Page 148 and 149:
Pre 97 Pension at Date of LeavingPr
Page 150 and 151:
2.8% and 3% are UK Guaranteed Minim
Page 152 and 153:
Factors used in the Form 3(a) for E
Page 154 and 155:
1 MGMP 65 = 0 if the member is aged
Page 156 and 157:
Factors used in the Form 3(a) for E
Page 158 and 159:
1 MGMP 65 = 0 if the member is aged
Page 160 and 161:
Pensioner Example 6. Male pensioner
Page 162 and 163:
Modified Method (2): Opposite sex c
Page 164 and 165:
Factors used in the Form 3(b) for E
Page 166 and 167:
May use instead of standard calcula
Page 168 and 169:
Back-payments Form 4(b) - GMP only
Page 170 and 171:
Uplift at Relevant Time (before app
Page 172 and 173:
Calculation of Accumulated Back-pay
Page 174 and 175:
D.1 Factors for calculating opposit
Page 176 and 177:
D.2 Questionnaire to gather scheme
Page 178 and 179:
Early retirement information15. Did
Page 180 and 181:
Late retirement from either active
Page 182 and 183:
NPAFGMP DOLFemale Deferred Pensione
Page 184 and 185:
e.g. 65 MGMP DOL = male GMP at date
Page 186:
65 to RTEnter 1 if pension does not
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?