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THE LOCAL GOVERNMENT PENSION SCHEME

Commutation of Small Pensions – Regulation 49

 

 

A note prepared by the Government Actuary’s Department for the Department of the Environment, Transport and the Regions dated 21 January 1998, and issued to them for onward transmission to administering authorities and employing authorities, gave the guidance required by Regulation 49(5) of the Local Government Pension Scheme Regulations 1997 (SI No. 1612 of 1997).

Tables A attached to this note, which gave the factors to be multiplied by the member’s pension in order to obtain the capital value of that pension (including an allowance for the contingent pension of a future marriage), showed factors for male members aged 65 to 70 and female members aged 60 to 70. Table B gave corresponding factors to be used only for married members in order to value the contingent spouse’s and children’s pensions to the extent that the value was not included in the value of the member’s pension.

The purpose of this note is to extend Tables A and B to give factors for members over age 70. The factors for ages above 70, to be applied in accordance with paragraphs 5 and 6 of the Guidance dated 21 January 1998, are attached.

 

 

 

R T Foster

18 May 2000

Table A Factor for member’s pension

Part 1 – Male members

 

Capital value of an annual pension of £1 to the member (including an allowance for the contingent pensions in respect of a member who is not married).

 

Member’s age last birthday at the date of commutation

Pre-6 April 1988 GMP

£

Post-5 April 1988 GMP

£

Excess over the GMP

£

71

7.33

8.63

9.39

72

7.08

8.29

8.99

73

6.83

7.95

8.60

74

6.58

7.62

8.21

75

6.33

7.29

7.84

76

6.08

6.97

7.47

77

5.84

6.66

7.11

78

5.60

6.35

6.77

79

5.36

6.05

6.43

80

5.13

5.76

6.11

81

4.91

5.49

5.80

82

4.69

5.22

5.50

83

4.48

4.96

5.22

84

4.27

4.71

4.95

85

4.08

4.47

4.69

86

3.89

4.25

4.44

87

3.70

4.03

4.21

88

3.53

3.82

3.98

89

3.36

3.63

3.77

90

3.20

3.44

3.57

91

3.04

3.27

3.38

92

2.90

3.10

3.20

93

2.75

2.94

3.03

94

2.62

2.78

2.87

95

2.49

2.63

2.71

96

2.36

2.49

2.56

97

2.24

2.36

2.42

98

2.13

2.23

2.29

99

2.02

2.11

2.16
100

1.92

2.00

2.04

Note For a married male member, the aggregate capital value should include the value of a contingent spouse’s pension using the Table B factors.

 

Table A Factor for member’s pension

Part 2 – Female members

 

Capital value of an annual pension of £1 to the member (including, where appropriate, an allowance for the contingent pensions in respect of a member who is not married).

 

Member’s age last birthday at the date of commutation

Pre-6 April 1988 GMP

£

Post-5 April 1988 GMP

£

Excess over the GMP

£

70

71

7.90

9.53

10.48

72

7.65

9.17

10.06

73

7.39

8.82

9.63

74

7.14

8.46

9.22

75

6.88

8.11

8.80

76

6.62

7.76

8.40

77

6.37

7.42

8.01

78

6.11

7.09

7.62

79

5.86

6.76

7.26

80

5.62

6.45

6.90

81

5.39

6.15

6.56

82

5.16

5.86

6.24

83

4.94

5.58

5.93

84

4.73

5.32

5.64

85

4.53

5.07

5.36

86

4.34

4.84

5.10

87

4.16

4.62

4.86

88

3.99

4.41

4.64

89

3.83

4.22

4.43

90

3.68

4.04

4.23

91

3.53

3.87

4.05

92

3.40

3.71

3.87

93

3.27

3.56

3.71

94

3.15

3.41

3.55

95

3.02

3.27

3.39

96

2.90

3.13

3.24

97

2.78

2.99

3.09

98

2.66

2.85

2.95

99

2.55

2.72

2.81
100

2.43

2.59

2.67

Note For a married male member, the aggregate capital value should include the value of a contingent spouse’s pension using the Table B factors.

 

Table B Factors for contingent spouse’s pension

Part 1 – Male members

 

Capital value of a contingent widow’s long-term annual pension of £1 for a married male member (including an allowance for contingent children’s pensions).

 

Member’s age last birthday at the date of commutation

Pre-6 April 1988 GMP

£

Post-5 April 1988 GMP

£

Excess over the GMP

£

71

1.88

2.77

3.35

72

1.92

2.79

3.35

73

1.96

2.80

3.33

74

1.99

2.79

3.30

75

2.02

2.78

3.27

76

2.03

2.76

3.22

77

2.04

2.74

3.17

78

2.04

2.70

3.10

79

2.03

2.66

3.03

80

2.02

2.61

2.96

81

2.00

2.55

2.88

82

1.97

2.49

2.80

83

1.94

2.43

2.72

84

1.91

2.37

2.63

85

1.87

2.30

2.55

86

1.84

2.23

2.46

87

1.80

2.17

2.38

88

1.76

2.10

2.30

89

1.72

2.00

2.22

90

1.68

1.91

2.15

91

1.64

1.85

2.08

92

1.60

1.80

2.01

93

1.57

1.75

1.95

94

1.53

1.70

1.89

95

1.50

1.66

1.83

96

1.47

1.61

1.78

97

1.43

1.56

1.72

98

1.40

1.51

1.66

99

1.36

1.45

1.60
100

1.31

1.40

1.54

 

Table B Factors for contingent spouse’s pension

Part 2 – Female members

 

Capital value of a contingent widower’s long-term annual pension of £1 for a married female member (including an allowance for contingent children’s pensions).

 

Member’s age last birthday at the date of commutation

Post-5 April 1988 GMP

£

Excess over the GMP

£

71

1.14

1.32

72

1.15

1.32

73

1.16

1.31

74

1.16

1.31

75

1.16

1.30

76

1.16

1.29

77

1.15

1.28

78

1.14

1.26

79

1.13

1.24

80

1.11

1.21

81

1.09

1.19

82

1.07

1.16

83

1.04

1.13

84

1.02

1.09

85

0.99

1.06

86

0.95

1.02

87

0.92

0.98

88

0.88

0.94

89

0.85

0.90

90

0.81

0.85

91

0.77

0.81

92

0.73

0.76

93

0.69

0.72

94

0.65

0.68

95

0.61

0.64

96

0.57

0.60

97

0.54

0.56

98

0.51

0.53

99

0.48

0.49
100

0.45

0.46