Mortality experience affects the Lifetime Pension pool in the following ways:
- The money-back protection benefit (if applicable) is paid from the pool.
- The pool retains the money that was funding Lifetime Pension income payments, creating a financial benefit or credit for the pool.
This benefit supports the Lifetime Pensions pool's ability to pay fortnightly pensions for life for the remaining members, including eligible spouses. We make assumptions about the level of these credits. The net variance to these assumptions, which may be positive or negative, will impact the overall adjustment amount.
These variations apply to the Lifetime Pension pool of money, not to individual members with a Lifetime Pension.