Calculation of market level adjustment
4.—(1) For the purposes of regulations 6, 7, 14 and 15 the market level adjustment figure (“MLA”) shall be calculated using the formula A × B + (1 – A) × C rounded up to four decimal places where —
(a)A is the decimal part of the yield on index-linked stocks;
(b)B is the adjustment factor set out in the Table which is applicable to the qualifying member’s age last birthday as at the relevant date and which appears under the heading of that full percentage figure immediately above the percentage figure for the yield on index-linked stocks; and
(c)C is the adjustment factor set out in the Table which is applicable to the qualifying member’s age last birthday as at the relevant date and which appears under the heading of that full percentage figure which is equal to or immediately below the percentage figure for the yield on index-linked stocks.
(2) In this Regulation —
“the Table” means, in respect of a transfer out of the Part I scheme Table 1 and, in respect of a transfer out of the section 19 scheme, Table 2;
“the yield on index-linked stocks” means the real yield to redemption on the Financial Times-Actuaries Index of index-linked Government securities with 5 or more years to redemption assuming 5% inflation, in respect of the first working day of the month in which the relevant date falls as published in the Financial Times.