The Postal Services Act 2011 (Transfer of Assets) Order 2012

Article 2

SCHEDULE 3 DEMOGRAPHIC ASSUMPTIONS

1.  The liabilities of the RMPP must be determined using the demographic assumptions set out in this Schedule.

Mortality

2.—(1) The mortality tables that must be used in deferment and after retirement in respect of a member and the member’s dependants are set out in the following table—

	Amount of pension in 2012 terms	Base table	mprovements
Male members	Less than £4,802 pa	120% S1PMA	100% Medium/Long cohort 2.0% tapered floor from 2009
Male members	£4,802 - £7,995 pa	114% S1PMA	100% Medium/Long cohort 2.0% tapered floor from 2009
Male members	£7,995 - £15,280 pa	99% S1PMA	100% Medium/Long cohort 2.0% tapered floor from 2009
Male members	Over £15,280 pa	89% S1PMA_L	100% Medium/Long cohort 2.0% tapered floor from 2009
Male dependants	All pension amounts	101% S1PMA	100% Medium/Long cohort 2.0% tapered floor from 2009
Female members	All pension amounts	96% S1DFA	75% Medium/Long cohort 2.0% tapered floor from 2009
Female dependants	All pension amounts	106% S1DFA	75% Medium/Long cohort 2.0% tapered floor from 2009

(2) The amount of pension used to determine the base mortality tables for male RMPP members must be determined based on the following—

(a) for pensioners, the amount of pension in payment;

(b) for deferred pensions, the amount of the member’s deferred pension at the valuation date; and

(c) for active members, the amount of the member’s projected pension at retirement, estimated in 2012 terms.

(3) The mortality tables are those produced by the Institute and Faculty of Actuaries Continuous Mortality Investigation with a year of use of 2012 after allowing for the mortality improvements specified under (4) and (5). S1PMA represents the SAPS series 1 table for all male pensioners excluding dependants, based on amounts. S1PMA_L represents the equivalent light table. S1DFA represents the SAPS series 1 table for female dependants, based on amounts.

(4) All the base tables used must also include an allowance for medium cohort improvements with a 1.5% per annum minimum rate of improvement (floor) from the date of the tables up to 2009.

(5) Medium/Long cohort represents a blend of 50% medium cohort improvements and 50% long cohort improvements from 2009 onwards.

(6) Future ill-health retirees shall be assumed to be subject to the above mortality on the basis that the members were born 3 years earlier than their actual date of birth; no adjustment is to be made to the standard mortality assumption for pensioners who have already retired on ill health grounds.

(7) Future death in-service rates must be assumed to follow the rates applicable to calendar year 2003 based on the standard PMA92 (males) and PFA92 (females) tables, as appropriate, in each case with the medium cohort mortality improvement rates.

Proportion married and age differences of members and dependants

3.—(1) The following table shows the assumed proportion of members that are married and assumed age differences of members and dependants—

Age	Proportion of members that are married		Age difference (years) [male – female]
	Male	Female
20	0.800	0.032	0.5
25	0.800	0.256	1.0
30	0.800	0.532	1.5
35	0.800	0.672	2.0
40	0.800	0.707	2.5
45	0.800	0.723	3.0
50	0.800	0.731	3.0
55	0.800	0.738	3.0
60	0.800	0.742	3.0
65	0.800	0.746	3.0

(2) After age 65 it is assumed that males are three years older than females.

(3) The assumed proportion married after Normal Retirement Date must be calculated using the proportion at Normal Retirement Date adjusted thereafter by the assumed dependant’s mortality.

Voluntary withdrawal and ill-health retirement

4.—(1) The following table shows the assumed rates of voluntary withdrawal and ill health retirement in the year following the age shown—

Age	Voluntary withdrawal rate	Ill-health retirement rate
		Male	Female
20	0.1700	0.0004	0.0004
25	0.1200	0.0004	0.0004
30	0.0700	0.0004	0.0004
35	0.0430	0.0005	0.0005
40	0.0360	0.0008	0.0008
45	0.0285	0.0011	0.0011
50	0.0210	0.0011	0.0015
55	0.0135	0.0075	0.0084
60	0.0000	0.0075	0.0131

(2) No allowance may be made for members retiring before their Normal Retirement Date in normal health, and no allowance is to be made for the exercise of members’ options such as commutation. A member’s Normal Retirement Date is 60 for pensionable service up to 31 March 2010 and 65 for pensionable service after this date. Members who have already attained age 60 must be assumed to retire immediately or at age 65, whichever is later.

Age-related salary scale

5.  The age-related adjustment used for clerical staff is calculated as the ratio of the figures from the scale at the relevant ages.

Age	Males	Females
20	1262	1262
25	1658	1554
30	2076	1785
35	2465	1956
40	2755	2108
45	2925	2271
50	2991	2446
55	2991	2635
60	2991	2838

6.  The tables of assumptions set out in this Schedule show sample rates at quinquennial ages, rates at intermediate ages are consistent with the rates shown.