# Input format examples:
# - Benefit statement PDF
# - Calculation spreadsheet
# - Retirement quote letter
# - Member data record

Read(file_path="[calculation-file]")

## Member Data Extracted

### Personal Details
- Name: [Member name]
- Date of Birth: [DOB]
- NI Number: [NI number]
- Current Age: [Age]
- State Pension Age: [SPA]

### Employment
- Employment Start Date: [Date]
- Membership Start Date: [Date]
- Retirement Date (actual/assumed): [Date]
- Final Pensionable Pay: £[Amount]

### Service
- Total Membership: [Years and days]
- Final Salary Link Service: [Years and days] (if pre-2014)
- CARE Service: [Years and days] (post-2014)
- Part-time Service: [Details if applicable]

### Calculation Inputs
- Calculation Type: [Normal/Early/Ill Health/Deferred/Death]
- Calculation Date: [Date]
- Scheme Section: [Final Salary/CARE/Both]
- Rule of 85 Status: [Protected/Not Protected]

# Query PSPS database for calculation rules
mcp__neo4j-psps__read_neo4j_cypher(
  query="
    MATCH (r:Regulation)-[:GOVERNS]->(c:Calculation)
    WHERE c.type = $calcType
    RETURN r.reference, r.formula, r.effective_date, r.notes
  ",
  params={"calcType": "[calculation type]"}
)

# Search for calculation guidance
mcp__archon__rag_search_knowledge_base(
  query="LGPS [calculation type] formula regulation",
  match_count=5
)

## Applicable Regulations

### Final Salary Benefits (pre-2014 service)
**Regulation**: LGPS Regulations 2013, Schedule 1
**Formula**: Pensionable service (years) / 60 × Final pensionable pay
**Lump Sum**: Automatic lump sum = Pension × 3

**Example**:
Service: 20 years
Final Pay: £30,000
Pension = 20/60 × £30,000 = £10,000 p.a.
Lump Sum = £10,000 × 3 = £30,000

### CARE Benefits (post-2014 service)
**Regulation**: LGPS Regulations 2013, Part 3
**Accrual Rate**: 1/49th
**Formula**: Sum of annual pension accounts (revalued)

**Example**:
Year 1: £30,000 × 1/49 = £612.24
Year 2: £30,600 × 1/49 = £624.49 (plus revaluation on Year 1)
Year 3: £31,212 × 1/49 = £636.98 (plus revaluation on Years 1 & 2)
etc.

## Independent Calculation

### Inputs
- Date of Birth: 15/05/1964
- State Pension Age: 66 (calculated from DOB)
- Membership: 1/04/2000 to 31/03/2024 = 24 years 0 days
- Final Pay: £35,000
- Retirement Age: 60 (early retirement)

### Final Salary Service (1/04/2000 to 31/03/2014)
Service: 14 years 0 days
Pension = 14/60 × £35,000 = £8,166.67 p.a.
Lump Sum = £8,166.67 × 3 = £24,500.00

### CARE Service (1/04/2014 to 31/03/2024)
[Calculate annual pension accounts with revaluation]
Year 1 (2014/15): £33,000 × 1/49 = £673.47
Year 2 (2015/16): £33,500 × 1/49 = £683.67 + revaluation
...
Year 10 (2023/24): £35,000 × 1/49 = £714.29 + revaluation
Total CARE Pension = £7,450.32 p.a. (after revaluation)

### Total Unreduced Pension
Final Salary: £8,166.67
CARE: £7,450.32
**Total: £15,616.99 p.a.**

### Early Retirement Reduction
Retirement at age 60, SPA is 66 = 6 years early
Reduction factor: Depends on year of early retirement
Using LGPS early retirement factors table:
6 years early = reduction of approximately 28%

Reduced pension: £15,616.99 × 0.72 = **£11,244.23 p.a.**

### Lump Sum
Final Salary automatic lump sum: £24,500.00
Plus any CARE commutation if taken

## Rule of 85 Check

### Rule of 85 Definition
Member's age + scheme membership (both in whole years) ≥ 85
**AND** member born before 1/04/1960

### Protection Status
DOB: 15/05/1964
Born after 1/04/1960 → **NOT protected**

**If protected**, would check:
Age at retirement: 60
Membership: 24 years
60 + 24 = 84 (< 85, so reduction would still apply)

**Conclusion**: Early retirement reduction applies (no Rule of 85 protection)

## Calculation Comparison

| Component | Provided Calc | Our Calc | Variance | Status |
|-----------|---------------|----------|----------|--------|
| Final Salary Service | 14 years | 14 years | 0 | ✓ |
| Final Salary Pension | £8,166.67 | £8,166.67 | £0.00 | ✓ |
| CARE Service | 10 years | 10 years | 0 | ✓ |
| CARE Pension (unreduced) | £7,398.15 | £7,450.32 | £52.17 | ⚠️ |
| Total Unreduced | £15,564.82 | £15,616.99 | £52.17 | ⚠️ |
| Early Retirement Factor | 0.72 | 0.72 | 0 | ✓ |
| **Final Pension** | **£11,206.67** | **£11,244.23** | **£37.56** | ⚠️ |
| Lump Sum | £24,500.00 | £24,500.00 | £0.00 | ✓ |

### Variance Analysis
**CARE Pension Variance: £52.17 (0.70%)**

Possible causes:
1. Different revaluation figures used
2. Rounding differences in annual calculations
3. Missing or incorrect salary data
4. Part-time service not accounted for

**Action**: Review CARE annual pension account records
**Materiality**: Low (< 1% variance)
**Recommendation**: Investigate but likely acceptable rounding

## Validation Checklist

### Data Quality Checks
- [ ] Date of birth matches member record
- [ ] NI number matches
- [ ] Membership dates continuous (no unexplained gaps)
- [ ] Final pay appears reasonable (not outlier)
- [ ] State Pension Age correctly calculated from DOB

### Formula Checks
- [ ] Correct accrual rate used (1/60 FS, 1/49 CARE)
- [ ] Revaluation applied to CARE accounts
- [ ] Early retirement factor applied correctly
- [ ] Lump sum calculated correctly (3× FS pension)

### Regulatory Checks
- [ ] Rule of 85 status assessed correctly
- [ ] Correct retirement age (not before 55)
- [ ] Ill health criteria met (if ill health retirement)
- [ ] Reduction factor from correct table/year

### Reasonableness Checks
- [ ] Pension not > 2/3 final pay (typical maximum)
- [ ] Total benefits not negative
- [ ] Reduction factor not > 50% (maximum early retirement)
- [ ] Similar to previous calculations for this member

### Edge Cases
- [ ] Part-time service pro-rated correctly
- [ ] Breaks in service handled
- [ ] Transfers in/out accounted for
- [ ] Additional voluntary contributions (AVCs) separate
- [ ] Multiple employments aggregated (if applicable)

## Anomaly Detection

### Red Flags 🔴 (Critical Errors)

**1. Wrong accrual rate**
- Calculation uses 1/80 instead of 1/60 for pre-2014
- **Impact**: Significant underpayment
- **Example**: £30k salary, 10 years = £3,750 (1/80) vs £5,000 (1/60)

**2. No early retirement reduction when required**
- Member under SPA but no reduction applied
- **Impact**: Significant overpayment
- **Example**: 5 years early = ~23% reduction missed

**3. Rule of 85 incorrectly applied**
- Protection granted when member not eligible
- **Impact**: Overpayment (reduction not applied when should be)

**4. Final pay incorrect**
- Using wrong pensionable pay definition
- Not using best of last 3 years (if applicable)
- **Impact**: Under/overpayment depending on error

**5. Service miscounted**
- Missing service periods
- Double-counting service
- **Impact**: Significant error in benefits

### Amber Flags 🟡 (Warnings)

**6. High revaluation variance**
- CARE revaluation differs significantly from expected
- **Impact**: Minor under/overpayment
- **Action**: Check revaluation rates used

**7. Part-time factors unclear**
- Part-time service adjustment not documented
- **Impact**: Potential error if not pro-rated
- **Action**: Verify part-time hours and factors

**8. Transfer values not shown**
- Member has transfer-in but not reflected
- **Impact**: Underpayment of benefits
- **Action**: Check transfer records

**9. Ill health enhancements unclear**
- Tier 1/2 ill health but enhancement not obvious
- **Impact**: Could be underpayment
- **Action**: Verify ill health tier and enhancement

### Green Flags ✓ (Acceptable)

**10. Minor rounding differences**
- Variance < £10 p.a. or < 0.1%
- **Impact**: Immaterial
- **Action**: Accept (rounding inherent in calcs)

**11. Different revaluation source**
- Using CPI vs different index
- **Impact**: Minor if recent
- **Action**: Document source used

**12. Recent salary changes**
- Final pay affected by recent promotion/increment
- **Impact**: None if correct pay used
- **Action**: Verify timing of change

# Pension Calculation Validation Report

**Member**: [Name]
**NI Number**: [NI]
**Calculation Type**: [Type]
**Validation Date**: [Date]
**Validator**: Claude Opus 4.5

## Executive Summary

**Overall Assessment**: [PASS / FAIL / PASS WITH MINOR ISSUES]

**Key Findings**:
- [Finding 1]
- [Finding 2]
- [Finding 3]

**Recommendation**: [Accept calculation / Request corrections / Escalate for review]

## Member Details

[From Phase 1]

## Regulatory Basis

[From Phase 2]

## Independent Calculation

[From Phase 3 - show full working]

## Comparison

[From Phase 4 - comparison table]

## Validation Checks

[From Phase 5 - checklist with results]

## Anomalies Identified

[From Phase 6 - list any red/amber/green flags]

### Critical Issues (Red 🔴)
[List any critical errors requiring correction]

### Warnings (Amber 🟡)
[List any warnings requiring investigation]

### Acceptable Variances (Green ✓)
[List any minor acceptable differences]

## Recommendations

### Immediate Actions Required
1. [Action if critical error found]
2. [Action if critical error found]

### Further Investigation
1. [Item to investigate if amber flag]
2. [Item to investigate if amber flag]

### Accept As-Is
[If validation passed, confirm acceptance]

## Supporting Evidence

### Regulations Referenced
- LGPS Regulations 2013, Regulation [X]
- Early Retirement Factors Table [Year]
- CPI Revaluation Rates [Period]

### Database Queries
- PSPS: [Node references]
- Archon RAG: [Page references]

## Calculations Detail

### Working Papers
[Attach detailed calc sheets if needed]

---

**Disclaimer**: This validation is based on publicly available LGPS regulations. Complex cases should be reviewed by the scheme actuary.

**Generated by**: Claude Opus 4.5 via Pension Calculation Validator
**Date**: [Timestamp]

Annual Pension = (Service in years / 60) × Final Pensionable Pay
Automatic Lump Sum = Annual Pension × 3

Annual Pension Account = (Pensionable Pay in year / 49)
Revalued Amount = Previous amount × (1 + Revaluation rate)
Total CARE Pension = Sum of all revalued annual accounts

Years Early = SPA - Retirement Age
Reduction % = Look up in Early Retirement Factors table
Reduced Pension = Unreduced Pension × (1 - Reduction %)

Protected if: Born before 1/04/1960 AND
              (Age + Membership ≥ 85 at retirement)

If protected: No reduction if Rule of 85 met
If not protected: Standard early retirement reduction applies

Tier 1: Service enhanced to Normal Pension Age
Tier 2: Service enhanced by 25%
Tier 3: No enhancement (immediate payment only)

Wrong: £30,000 × 10/80 = £3,750
Right: £30,000 × 10/60 = £5,000
Difference: £1,250 p.a. (33% error!)

Member retires at 60, SPA 66
Wrong: Unreduced pension of £15,000
Right: Reduced by ~28% = £10,800
Difference: £4,200 p.a. overpayment!

Using current salary instead of average of best 3 consecutive years
Could be higher OR lower depending on salary history
Impact: Varies but can be significant

Wrong: Sum of nominal annual accounts
Right: Sum of revalued annual accounts
Impact: Underpayment (typically 10-20% over 10 years)

Wrong: Granting protection to member born after 1/04/1960
Right: Check DOB before applying protection
Impact: Overpayment (reduction not applied when should be)

# Calculate age from DOB
# DOB: 15/05/1964, Today: 10/01/2026
AGE=$(( ($(date +%Y) - 1964) - ($(date +%m%d) < 0515) ))
echo $AGE  # 61

# Calculate years of service
# Start: 01/04/2000, End: 31/03/2024
# Use online calculator or manual calculation

# Search for regulation
grep -i "regulation [0-9]+" calculation.txt