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

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Generalised formula for male deferred pensionersAdjustment to Pre 97 NPA 60 tranche(a) [ FGMP DOL x (FGMP_Revs DOL:RT - XS_Revs DOL:RT )- 60 MGMP DOL x (MGMP_Revs DOL:RT - XS_Revs DOL:RT ) ]= [ 129.65 x ( 2.9589 - 1.457 )= 29.51– 110.00 x ( 2.9589 - 1.457 ) ](b) ( FGMP DOL x FGMP_Revs DOL:RT ) –60DP RT= ( 129.65 x 2.9589 ) – 500.33= -116.71Choose the maximum of (a), (b)= £29.51 pa ie (a)Adjustment to Pre 97 NPA 65 tranche (negative)Complete (a) or (b) below, in line with the one which was used above:(a) - [ ( 65 MGMP DOL – Pre90_ 65 MGMP DOL ) Yesx (MGMP_Revs DOL:RT - XS_Revs DOL:RT ) ]= - [ ( 1,150.00 - 1,150.00 )x ( 2.9589 - 1.457 ) ]= £ 0 pa(b) - [( 65 MGMP DOL - Pre90_ 65 MGMP DOL ) x (MGMP_Revs DOL:RT -XS_Revs DOL:RT )+ (FGMP DOL - 60 DP DOL ) x XS_Revs DOL:RT ] No= - [ ( - ) x ( - )+ ( - ) x ]=93
Deferred Example 5. Male > age 60 deferred pensioner at theRelevant TimeTimelineAge 60456265Date ofleaving(DOL)SchemeNPA 1RelevantTime(RT)SchemeNPA 2Membership DetailsDate of Birth = 5 December 1946Date joined scheme = 1 May 1985Date of leaving the scheme = 31 December 1991Scheme NPA 1 = 5 December 2006 (age 60)Assessment Date = 2 July 2009Relevant Time (RT) = 1 July 2009 (age 62 7/12 (nearest month)*)Pre 97 Pension at Date of LeavingPre 97 Deferred Pension at date of leaving = £2,830.00 pa which has been split intotranches NPA 60 and NPA 65 (based on service dates) as follows:Service Dates NPA Total Pensionat date of leavingGMPmade up of:Excess pension01/05/1985 – 16/05/1990 65 £2,100.00 pa £1,150.00 pa £950.00 pa17/05/1990 – 31/12/1990 60 £230.00 pa £110.00 pa £120.00 pa01/01/1991 – 31/12/1991 65 £500.00 pa £240.00 pa £260.00 paTotal n/a £2,830.00 pa £1,500.00 pa £1,330.00 paThe scheme provided revaluation on the pension in deferment at the following rates: Fixed Rate Revaluation on GMP (in this case 7.5% pa) Statutory revaluation on the excess pensionThe member is over age 60 at the Relevant Time so the NPA 60 tranche of pension needs tocome into immediate payment assuming that the member retired at the Relevant Time. Thepension coming into payment is calculated using the schemes method of calculating lateretirement pensions (Paragraph 5 of Schedule 7 of PA2004).The scheme calculated late retirement pensions for both males and females by increasingthe pension revalued to NPA 60 by a late retirement factor of 10% pa compound(*calculated using the members age calculated to the nearest month).The member is effectively considered to be a pensioner at the Relevant Time forthe NPA 60 tranche of pension.The example therefore treats the member as:94
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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
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For actives, the application of the
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B.7.4 Typically male deferred pensi
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B.8.3 Back-paymentsWhere pensioner
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B.10 Back-paymentsB.10.1 Back payme
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(c) New Pensioners between the RT a
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C.1 Data requirementsFor members of
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C.3 AssumptionsThis section contain
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females joining the scheme after ag
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C.4 PPF Standard FormsThese forms c
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Form 1 - Active members at the Rele
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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 76 and 77: Generalised formula for male deferr
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 136 and 137: Pre 97 PPF compensation at Relevant
Page 142 and 143: Age at DOR = DOR - DOB (years and m
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PLUS applicable to pensioners who h
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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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