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

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