This note is provided for the Ministry of Defence (MoD) as scheme manager of the Armed Forces pension arrangements and sets out factors and guidance on service credits for outgoing non-Club transfers for AFPS75 and AFPS05 members.
Any non-Club transfers into AFPS05 or AFPS75 should be referred to the Government Actuary's Department (GAD) on an individual basis.
Guidance relating to non-Club transfers into and out of AFPS15 is provided in a separate guidance note.
The following changes have been made when reviewing this guidance:
- Important information around the expected audience for the guidance, use of the guidance, review of factors, compliance and limitations applies across all sets of guidance. Rather than being repeated in each set of guidance, this can now be found on the scheme home page. It is important to read this information alongside the guidance.
- Calculation methodology: No changes have been made to the calculation methodology.
- Examples: There are no examples in this guidance. Worked examples, using the calculation methodology, can be found in prior versions of the guidance (though please note that these use historic factors).
- Factor tables: The "Factor Tables" tab contains the names of the tables that are referenced in the calculation methodology. The tables of factors themselves can be found in the most recently published "Consolidated Factors Workbook" which is available by clicking the "Download current Consolidated Factors Workbook" button on the scheme's home page.
- Assumptions: The key assumptions underlying the factors in each note are contained in the Consolidated Factors Workbook.
- Regulations: The regulations that require the production of the actuarial factors and/or guidance that is the subject of this note are summarised in the "Regulations" tab.
The spreadsheet sent to MoD contains the relevant factors for use in non-Club transfer out calculations for members of AFPS75 and AFPS05. The tables for use in these cases are tables 201 and 202.
These factors are "MoD-Controlled" factors so it is MoD's decision whether to update these factors after considering GAD's recommendation.
