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MaxGhenisMaxGhenis
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Merge pull request #1579 from PolicyEngine/codex/fix-pension-credit-capital-rules
Add Pension Credit capital rules
2 parents a0e92cb + 3e17e62 commit 167771b

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Lines changed: 309 additions & 10 deletions

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‎policyengine_uk/parameters/gov/dwp/pension_credit/guarantee_credit/income.yaml‎

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reference:
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- href: https://www.legislation.gov.uk/ukpga/2002/16/section/15
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title: State Pension Credit Act 2002 s. 15(1)
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- href: https://www.legislation.gov.uk/uksi/2002/1792/regulation/15
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title: State Pension Credit Regulations 2002 reg. 15
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unit: list
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values:
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2002-01-01:
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- pension_credit_earnings
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- working_tax_credit
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- state_pension
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- private_pension_income
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- capital_income
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- pension_credit_deemed_income
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- esa_contrib
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- jsa_contrib

‎policyengine_uk/parameters/gov/dwp/pension_credit/income/capital/lower_threshold.yaml‎

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description: Capital amount disregarded before Pension Credit deemed income applies.
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metadata:
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unit: currency-GBP
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period: year
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reference:
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- href: https://www.legislation.gov.uk/uksi/2002/1792/regulation/15
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title: State Pension Credit Regulations 2002 reg. 15(6)
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- href: https://www.gov.uk/pension-credit/eligibility
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title: Pension Credit eligibility guidance
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values:
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2003-10-06: 6000
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2009-11-16: 10000

‎policyengine_uk/parameters/gov/dwp/pension_credit/income/capital/sources.yaml‎

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description: >
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PolicyEngine approximation of Pension Credit capital sources that count
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toward deemed income from capital, excluding the claimant's main home.
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metadata:
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label: Pension Credit capital sources
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name: pension_credit_capital_sources
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unit: list
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reference:
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- href: https://www.legislation.gov.uk/uksi/2002/1792/regulation/15
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title: State Pension Credit Regulations 2002 reg. 15
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- href: https://www.legislation.gov.uk/uksi/2002/1792/schedule/5
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title: State Pension Credit Regulations 2002 Sch. 5
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- href: https://www.gov.uk/government/publications/pension-credit-technical-guidance/a-detailed-guide-to-pension-credit-for-advisers-and-others
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title: Pension Credit technical guidance
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propagate_metadata_to_children: true
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values:
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2003-10-06:
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- savings
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- owned_land
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- other_residential_property_value
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- non_residential_property_value
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- corporate_wealth

‎policyengine_uk/parameters/gov/dwp/pension_credit/income/capital/tariff_income/amount.yaml‎

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description: Weekly deemed income amount for each Pension Credit capital step.
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metadata:
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unit: currency-GBP
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period: week
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reference:
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- href: https://www.legislation.gov.uk/uksi/2002/1792/regulation/15
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title: State Pension Credit Regulations 2002 reg. 15(6)
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- href: https://www.gov.uk/pension-credit/eligibility
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title: Pension Credit eligibility guidance
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values:
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2003-10-06: 1

‎policyengine_uk/parameters/gov/dwp/pension_credit/income/capital/tariff_income/step.yaml‎

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description: Capital step used for Pension Credit deemed income from capital.
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metadata:
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unit: currency-GBP
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period: year
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reference:
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- href: https://www.legislation.gov.uk/uksi/2002/1792/regulation/15
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title: State Pension Credit Regulations 2002 reg. 15(6)
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- href: https://www.gov.uk/pension-credit/eligibility
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title: Pension Credit eligibility guidance
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values:
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2003-10-06: 500

‎policyengine_uk/tests/policy/baseline/gov/dwp/pension_credit/guarantee_credit/is_guarantee_credit_eligible.yaml‎

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minimum_guarantee: 180
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output:
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is_guarantee_credit_eligible: false
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- name: Pension Credit deemed income from capital can remove Guarantee Credit eligibility.
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period: 2021
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input:
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people:
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person:
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age: 70
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benunits:
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benunit:
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members: person
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minimum_guarantee: 100
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households:
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household:
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members: person
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savings: 10_501
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output:
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pension_credit_deemed_income: 104
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pension_credit_income: 104
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is_guarantee_credit_eligible: false

‎policyengine_uk/tests/policy/baseline/gov/dwp/pension_credit/pension_credit_deemed_income.yaml‎

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- name: Pension Credit has no deemed income at the capital disregard.
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period: 2021
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input:
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people:
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person:
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age: 70
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benunits:
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benunit:
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members: person
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households:
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household:
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members: person
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savings: 10_000
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output:
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pension_credit_assessable_capital: 10_000
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pension_credit_deemed_income: 0
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- name: Pension Credit rounds the first capital step up.
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period: 2021
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input:
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people:
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person:
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age: 70
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benunits:
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benunit:
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members: person
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households:
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household:
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members: person
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savings: 10_001
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output:
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pension_credit_assessable_capital: 10_001
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pension_credit_deemed_income: 52
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- name: Pension Credit keeps one deemed-income step through the interval.
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period: 2021
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input:
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people:
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person:
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age: 70
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benunits:
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benunit:
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members: person
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households:
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household:
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members: person
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savings: 10_500
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output:
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pension_credit_assessable_capital: 10_500
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pension_credit_deemed_income: 52
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- name: Pension Credit rounds the second capital step up.
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period: 2021
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input:
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people:
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person:
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age: 70
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benunits:
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benunit:
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members: person
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households:
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household:
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members: person
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savings: 10_501
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output:
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pension_credit_assessable_capital: 10_501
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pension_credit_deemed_income: 104
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- name: Pension Credit counts direct land holdings as capital.
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period: 2021
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input:
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people:
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person:
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age: 70
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benunits:
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benunit:
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members: person
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households:
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household:
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members: person
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owned_land: 10_001
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output:
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pension_credit_assessable_capital: 10_001
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pension_credit_deemed_income: 52
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- name: Pension Credit does not dilute pensioner capital across unrelated adult benunits.
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period: 2021
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input:
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people:
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pensioner:
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age: 70
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adult_child:
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age: 30
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benunits:
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pensioner_benunit:
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members: [pensioner]
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child_benunit:
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members: [adult_child]
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households:
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household:
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members: [pensioner, adult_child]
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savings: 10_501
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output:
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pension_credit_assessable_capital: [10_501, 0]
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pension_credit_deemed_income: [104, 0]
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- name: Pension Credit splits capital across separate pension-age benunits.
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period: 2021
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input:
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people:
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pensioner_1:
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age: 70
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pensioner_2:
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age: 72
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benunits:
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benunit_1:
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members: [pensioner_1]
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benunit_2:
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members: [pensioner_2]
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households:
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household:
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members: [pensioner_1, pensioner_2]
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savings: 20_002
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output:
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pension_credit_assessable_capital: [10_001, 10_001]
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pension_credit_deemed_income: [52, 52]

‎policyengine_uk/tests/policy/baseline/gov/dwp/pension_credit/pension_credit_income.yaml‎

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- name: All income sources are included.
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period: 2021
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input:
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employment_income: 1
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working_tax_credit: 2
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state_pension: 4
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private_pension_income: 8
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capital_income: 16
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esa_contrib: 32
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jsa_contrib: 64
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self_employment_income: 128
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people:
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person:
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age: 70
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employment_income: 1
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state_pension: 4
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private_pension_income: 8
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esa_contrib: 32
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jsa_contrib: 64
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self_employment_income: 128
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benunits:
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benunit:
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members: person
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working_tax_credit: 2
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households:
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household:
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members: person
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savings: 11_000
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output:
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pension_credit_income: 255
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pension_credit_deemed_income: 104
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pension_credit_income: 343
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- name: Interest and dividends are not counted directly in Pension Credit income.
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period: 2021
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input:
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people:
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person:
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age: 70
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savings_interest_income: 500
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dividend_income: 300
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benunits:
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benunit:
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members: person
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households:
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household:
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members: person
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savings: 10_000
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output:
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pension_credit_deemed_income: 0
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pension_credit_income: 0
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- name: Pension Credit deemed income starts above the capital disregard.
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period: 2021
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input:
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people:
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person:
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age: 70
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benunits:
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benunit:
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members: person
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households:
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household:
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members: person
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savings: 10_001
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output:
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pension_credit_assessable_capital: 10_001
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pension_credit_deemed_income: 52
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pension_credit_income: 52

‎policyengine_uk/variables/gov/dwp/pension_credit/pension_credit_assessable_capital.py‎

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from policyengine_uk.model_api import *
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class pension_credit_assessable_capital(Variable):
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value_type = float
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entity = BenUnit
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label = "Pension Credit assessable capital"
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documentation = (
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"Pension Credit capital counted from the configured capital sources, "
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"split only across pension-age adults in the household so pensioner "
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"couples pool capital together without dilution by unrelated working-"
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"age adults."
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)
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definition_period = YEAR
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unit = GBP
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def formula(benunit, period, parameters):
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household = benunit.household
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person = benunit.members
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p = parameters(period).gov.dwp.pension_credit.income.capital
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household_capital = add(household, period, p.sources)
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any_pension_age = benunit.any(person("is_SP_age", period))
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benunit_pension_age_adults = benunit.sum(person("is_SP_age", period))
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household_pension_age_adults = benunit.max(
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person.household.sum(person.household.members("is_SP_age", period))
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)
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adult_divisor = max_(1, household_pension_age_adults)
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household_capital_proxy = (
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household_capital * benunit_pension_age_adults / adult_divisor
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)
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return where(any_pension_age, max_(0, household_capital_proxy), 0)

‎policyengine_uk/variables/gov/dwp/pension_credit/pension_credit_deemed_income.py‎

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from policyengine_uk.model_api import *
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import numpy as np
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class pension_credit_deemed_income(Variable):
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label = "Pension Credit deemed income from capital"
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entity = BenUnit
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definition_period = YEAR
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value_type = float
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unit = GBP
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reference = "https://www.legislation.gov.uk/uksi/2002/1792/regulation/15"
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def formula(benunit, period, parameters):
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p = parameters(period).gov.dwp.pension_credit.income.capital
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capital = benunit("pension_credit_assessable_capital", period)
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excess = max_(0, capital - p.lower_threshold)
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steps = np.ceil(excess / p.tariff_income.step)
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return steps * p.tariff_income.amount * WEEKS_IN_YEAR

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