The age used in the calculation should be determined as at the relevant date for the calculation. The relevant date is the transfer date as defined in Regulations.
Before a statutory CETV is accepted a check must be conducted to ensure that the transfer value is sufficient to ensure that the GMP liability will be covered. Such part of the transfer value as relates to pension benefit accrual before 6 April 1997 must be at least as great as the value of the GMP liability. The value of the GMP liability is calculated using the following formula:
GMP liability = [PRE GMP + (G x POST GMP)] x FGMPval
Where:
PRE GMP is the annual GMP accrued before 6 April 1988
POST GMP is the annual GMP accrued from 6 April 1988
FGMPval is the factor for GMP valuation - see table TVIN_15GMP
G is the conversion factor applied to GMP valuation factor, for GMP accrued in respect of service from 6 April 1988.
When using the male factors in table TVIN_15GMP for calculating the value of GMP rights, the factor given should be applied to the annual amount of the GMP accrued in respect of service before 6 April 1988, plus 1.25 times the annual amount of GMP accrued in respect of service from that date.
When using the female factors in table TVIN_15GMP for calculating the value of GMP rights, the factor given should be applied to the annual amount of the GMP accrued in respect of service before 6 April 1988, plus 1.30 times the annual amount of GMP accrued in respect of service from that date.
If this test is not satisfied, the transfer cannot be accepted by the 2015 scheme.
In a case where a transfer cannot be accepted because the GMP test in the paragraph above is not satisfied, the 2015 scheme would nevertheless be able to accept a transfer value in respect of the benefits in excess of the GMP, with the GMP liability remaining with the former scheme.
In each scheme year and subject to the period over which transfers are allowed, there is a limit on the size of pension credit that may be granted in respect of transfers into the 2015 scheme. This is 50% of the annual rate of the member's pensionable earnings at the date that they became an active member of the scheme.
