Death in Deferment Pension: Benefit Basis
Select from the drop-down list how the spouse’s death in deferment pension benefits should be defined. The options are:
- None
- GMP then Spouse’s Fraction
- GMP then 1/160 Revalued
- Max(GMP,1/160) then Spouse’s Fraction
- Max(GMP,1/160) then 1/160 Revalued
- Spouse’s Fraction
For options other than None or Spouse’s Fraction the benefits will
be calculated differently for Slices before and after the Offset
Slices (the lowest slice number for which
GMPs underlying the benefits).
Consider the following service time line:
The benefit for each option in each of the periods is as follows:
| Option | Offset Past Service | Rest Past Service | Future Service |
|---|---|---|---|
| None | None | None | None |
| GMP then Spouse’s Fraction | Spouse’s GMP | % of Member’s Pension | % of Member’s Pension |
| GMP then 1/160 Revalued | Spouse’s GMP | 1/160 × Salary × Service, revalued in deferment | 1/160 × Salary × Service, revalued in deferment |
| Max (GMP,1/160) then Spouse’s Fraction | Greater of: Spouse’s GMP and 1/160 × Salary × Service | % of Member’s Pension | % of Member’s Pension |
| Max (GMP,1/160) then 1/160 Revalued | Greater of: Spouse’s GMP and 1/160 × Salary × Service | 1/160 × Salary × Service, revalued in deferment | 1/160 × Salary × Service, revalued in deferment |
| Spouse’s Fraction | % of Member’s Pension | % of Member’s Pension | % of Member’s Pension |
Please note the following about the above benefits:
GMP then 1/160 Revalued Benefit
The Start Date for the 1/160th benefit will be later of the Not After Date that is specified on the Offset Slice and the Start Date specified on this Tab.
The Finish Date for the 1/160th benefit will be the end date of the lowest number Slice specified i.e. LDATE in Slice 1.
The pension will be revalued in deferment according to the Deferred Revaluation Rate specified on the Financial tab.
Max (GMP, 1/160) then Spouse’s Fraction or Max (GMP, 1/160) then 1/160 Revalued
The Start Date for the Max (GMP, 1/160) benefit will be the later of Start Date and Not Before Date specified on this Tab. The Finish Date for the Max (GMP, 1/160) benefit will be the Not After Date that is specified on the Offset Slice.
The Start Date for the 1/160 Revalued in Deferment will be for the Not After Date that is specified on the Offset Slice. The Finish Date for the 1/160th benefit will be the end date of the lowest number Slice specified i.e. LDATE in Slice 1.
For both these options the user will be asked to specify whether to revalue benefits using the Revalue Pre-1997 1/160ths. If this box is checked then the benefit will be revalued according to the Deferred Revaluation Rate specified on the Financial tab .
Spouse’s Fraction
This will be determined from the benefits described on the Slices multiplied by the Benefit Percentage. In deferment the benefits will be revalued using the rate selected in the Revaluation in Deferment on the Slices Tab.
Note: Added Years and Pension Data Items
When valuing the death in deferment pension any Added Years or Pension Data Items specified on the Slices are included in the spouse’s death in deferment benefits valued using the Spouse’s Fraction but not in the 1/160ths pension benefits for death in deferment.