What they mean is this:
Say your nine-year-old takes an achievement test and the results for, umm,
math computation are the 99th percentile, with a grade equivalent of 12.9.
This means that an average graduating high school senior taking the same test would be expected to get the result your child got.
It does NOT mean, as the OP suggested, that you should ship your nine-year-old off to college.

He might cry. Mine would.

I'm not sure what the point of the grade-equivalents on those tests is, unless it's to sow confusion...I mean, who cares how a 12th grader would do on a 4th grade test? And did they make a bunch of older kids take the tests so that they could establish norms?