PRC Actuarial Tables
Factors for Capitalising Mandatory and Discretionary Compensation
Calculating Capitalised Values for Awards payable from 01/10/07
The capitalised value of the mandatory compensation pension, to be paid as a single amount to the Teachers Pension Scheme is arrived at as follows (using the example in Section 7: Part 5):
Age of Teacher |
56 years |
|
Gender |
Male |
|
Value of Pension |
£3,649 |
|
Value of Lump Sum |
£6,536 |
|
Factor |
18.35 |
£3,649 x 18.35 = £66,959.15
Add to this the value of the lump sum £6,536, gives a total of £73,495.15
| Age last birthday | Male | Female | Widow | Widower |
|---|---|---|---|---|
50 |
20.09 |
20.86 |
1.99 |
0.69 |
51 |
19.88 |
20.67 |
2.05 |
0.71 |
52 |
19.63 |
20.45 |
2.12 |
0.74 |
53 |
19.35 |
20.20 |
2.19 |
0.76 |
54 |
19.04 |
19.92 |
2.26 |
0.78 |
55 |
18.70 |
19.61 |
2.33 |
0.80 |
56 |
18.35 |
19.29 |
2.41 |
0.82 |
57 |
17.99 |
18.96 |
2.48 |
0.84 |
58 |
17.62 |
18.63 |
2.56 |
0.86 |
59 |
17.24 |
18.28 |
2.64 |
0.88 |
60 |
16.85 |
17.93 |
2.72 |
0.90 |
61 |
16.45 |
17.56 |
2.80 |
0.92 |
62 |
16.04 |
17.19 |
2.88 |
0.94 |
63 |
15.63 |
16.81 |
2.96 |
0.96 |
64 |
15.21 |
16.42 |
3.04 |
0.98 |
65 |
14.78 |
16.02 |
3.12 |
1.00 |
66 |
14.34 |
15.62 |
3.19 |
1.01 |
67 |
13.90 |
15.21 |
3.27 |
1.02 |
68 |
13.46 |
14.80 |
3.34 |
1.03 |
69 |
13.02 |
14.38 |
3.40 |
1.04 |
70 |
12.57 |
13.96 |
3.46 |
1.05 |
71 |
12.13 |
13.54 |
3.51 |
1.05 |
72 |
11.69 |
13.12 |
3.56 |
1.05 |
73 |
11.26 |
12.70 |
3.60 |
1.05 |
74 |
10.83 |
12.28 |
3.64 |
1.05 |
75 |
10.41 |
11.87 |
3.66 |
1.04 |
76 |
10.00 |
11.46 |
3.68 |
1.03 |
77 |
9.60 |
11.05 |
3.68 |
1.02 |
78 |
9.21 |
10.65 |
3.68 |
1.01 |
79 |
8.84 |
10.26 |
3.66 |
0.99 |
80 |
8.48 |
9.88 |
3.64 |
0.97 |
81 |
8.14 |
9.51 |
3.61 |
0.95 |
82 |
7.82 |
9.15 |
3.56 |
0.93 |
83 |
7.51 |
8.81 |
3.51 |
0.91 |
84 |
7.23 |
8.47 |
3.44 |
0.88 |
85 |
6.96 |
8.16 |
3.37 |
0.86 |
86 |
6.72 |
7.85 |
3.29 |
0.83 |
87 |
6.49 |
7.57 |
3.19 |
0.81 |
88 |
6.28 |
7.30 |
3.10 |
0.78 |
89 |
6.09 |
7.04 |
2.99 |
0.76 |
90 |
5.92 |
6.81 |
2.88 |
0.73 |
NOTE: These factors include an allowance for the cost of pension increase. The widow/widower factors should only be used when granting discretionary enhancement. If you grant discretionary enhancement to a teacher you are responsible for any family benefits payable after their death. You must include the factor for the spouses’ pensions in the capitalised costs. If you do not award discretionary compensation you do not need to include this factor as you are not responsible for the costs of any family pension.
If you choose to pay the capitalised cost by instalments, option C, you need to divide the capitalised lump sum by the appropriate factor below. For example if you want to pay by 5 annual instalments you would divide the capitalised lump sum by 4.525. The first instalment payment is due at retirement date.
Number of Annual Instalments:
2 |
3 |
4 |
5 |
Factors |
|||
1.95 |
2.853 |
3.711 |
4.525 |