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

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eing a late retirement pensioner for the NPA 60 tranche; anda separate deferred pensioner for the NPA 65 tranche.It is assumed that the late retirement factor is generous enough to account for the antifrankingand contracting out legislation for males and females; therefore no further testsare required in respect of these pieces of legislation. The above approach will result in anyfemale GMP included in the 65 tranche being payable from age 60. This approach will be atleast sufficient to meet the contracting out requirements in respect of the female GMP.Note - the NPA 60 tranche of pension is not subject to the compensation cap and 90%multiplier.Pre 97 Pension revalued to the Relevant Time (age 62)PensionerNPA 60 tranche110.00*1.075 120.00*1.437 £636.93pa15*1.2792Deferred PensionerNPA 65 tranche(1,150.00 240.00) *1.075 (950.00 260.00) *1.624 £7,074.41pa18where:Pensioner - NPA 60 tranche43.7% = Occupational Pensions (Revaluation) Order 2005 for 14 year revaluation period15 revaluations are granted to the male NPA 60 GMP at 6/4/1992 - 6/4/2006 inclusive1.2792 = scheme unisex late retirement factor = 1.10 2 7/12Deferred Pensioner - NPA 65 tranche62.4% = Occupational Pensions (Revaluation) Order 2008 for 17 year revaluation period18 revaluations are granted to the male NPA 65 GMP at 6/4/1992 - 6/4/2009 inclusiveNo legislative checks are required to the male NPA 60 tranche of compensation inpayment as the member is under the male GMP Age of 65.95
Modified Method (2): Opposite sex calculation – applicable to a femalePre 97 Pension at Date of LeavingThe Pre 97 Deferred Pension at date of leaving = £2,830.00 pa is unchanged. However, thesplit of the different NPA tranches into GMP and excess pension has changed 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 £129.65 pa £100.35 pa01/01/1991 – 31/12/1991 65 £500.00 pa £282.86 pa £217.14 paTotal n/a £2,830.00 pa £1,562.51 pa £1,267.49 paWhere the equivalent Female GMPs (17/5/1990 – 31/12/1991) at date of leaving is:NPA 60 tranche = 110.00 x 1.1786 = £129.65 paNPA 65 tranche = 240.00 x 1.1786 = £282.86 pa(1.1786 is taken from the table in Part D.1 for calculating opposite sex GMP)As above, the member is over age 60 at the Relevant Time so the NPA 60 tranche ofpension needs to come into immediate payment assuming that the member retired at theRelevant Time. The member is effectively treated as a pensioner for the NPA 60 tranche.Pre 97 Pension revalued to the Relevant Time (age 62)PensionerNPA 60 trancheDeferred PensionerNPA 65 tranche129.65*1.075 100.35*1.437 £640.95 pa14*1.2792181,150.00 *1.075 1,012.40(950.00 217.14) *1.624 £7,135.01pawhere:Pensioner - NPA 60 tranche43.7% = Occupational Pensions (Revaluation) Order 2005 for 14 year revaluation period14 revaluations are granted to the female NPA 60 GMP at 6/4/1992 - 6/4/2005 inclusive1.2792 = scheme unisex late retirement factor = 1.10 2 7/12Deferred Pensioner - NPA 65 tranche62.4% = Occupational Pensions (Revaluation) Order 2008 for 17 year revaluation period18 revaluations are granted to the male NPA 65 GMP at 6/4/1992 - 6/4/2009 inclusiveRevalued female GMP at age 62 7/12= [282.86 x 1.075 14 ] x [(1 + (2x52+29)/700) x (1.03x1.03x1.03)]778.56 x 1.30035 = £1,012.40 pa14 revaluations are granted to the female GMP at 6/4/1992 - 6/4/2005 inclusive;3%; 3%; 3% are UK Guaranteed Minimum Pension Increase Orders effective on 6 April2007, 2008 and 2009 respectively.96
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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
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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 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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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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