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

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Pensioner NPA 60 trancheThe member is over the female GMP Age of 60 for the NPA 60 tranche of compensation inpayment.Statutory requirements for female at age 62 7/12(a) Contracting-out legislationRevalued female GMP at age 62 7/12= [129.65 x 1.075 14 ] x [(1 + (2x52+29)/700) x (1.03x1.03x1.03)]356.85 x 1.30035 = £464.04 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.The female GMP minimum in respect of the NPA 60 tranche of benefit is clearly covered atretirement.(b) Anti-franking and preservation legislationThe Trustees will have taken into consideration these pieces of legislation in setting thecalculation of the member’s late retirement pension. As this scheme uses unisex lateretirement factors it is assumed that the Trustees’ late retirement factors and method tookinto account the statutory requirements relating to both males and females. No furthercheck is therefore required.No further adjustment is required to the Pensioner NPA 60 tranche of PPF compensation tomeet the additional female legislative requirements.Deferred Pensioner trancheThe deferred pensioner tranche has NPA 65 and now contains an element of female GMP. Assuch, it is subject to the statutory minimum tests applicable to a female. At the AssessmentDate the member has not made a decision to retire. However, as the member is now overthe female GMP Age of 60 he is entitled to immediate payment of the female GMP with astatutory late retirement increase.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 lowerAs the member is over female GMP Age of 60 revaluation include statutory late revaluationfrom age 60 to the Relevant Time.(1) “all female GMP” in the NPA 65 tranche with revaluation on the GMP97
=£1,012.40 pa (maximum) (see calculation above)(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= 0.00 + (1,012.40 - 282.86) – 176.50 = £553.04 pawhere:revaluation on “revised excess pension” with NPA 60 or lower= (0 – 282.86) x (1.624 -1) = -£176.50 paThere is insufficient pension in the NPA 60 tranche to meet the Statutory Minimumof £1,012.40 pa. This element of the deferred pension must come into immediatepayment.The female revalued GMP is effectively moved to the NPA 60 tranche. To avoid doublecounting the pension payable at 65 is reduced to reflect the GMP is now being paid earlier.The revised NPA 65 tranche is calculated as:= (1,150 x 1.075 18 ) + ((950.00 + 217.14) x 1.624) = £6,122.61 paSummary of Pre 97 Pension at the Relevant TimePre 97 pension at RTMale£ paEquivalent Female£ paPensioner NPA 60 636.93 640.95DP NPA 60 - new 0 1,012.40DP NPA 65 7,074.41 6,122.61Total 7,711.34 7,775.96Adjustment to Pension revalued to the Relevant Time as currently shown on thePPF Data InterfacePre 97 pension at RTAdjustment to DIL£ paPensioner NPA 60 640.95 – 636.93 = + 4.02DP NPA 60 - new 1,012.40 – 0 = +1,012.40DP NPA 65 6,122.61 - 7,074.41 = -951.80Overall change 7,775.96 - 7,711.34 = +64.62The change in Pre 97 pension for this male example has been illustrated using the:- Pensioner Form 3(a); and- Male Deferred Pensioner Form 2(a).98
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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
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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 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
Page 146 and 147: 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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Factors used in the Form 3(a) for E
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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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