Deferred members of AFPS15 are generally entitled to voluntarily take a transfer value to another pension arrangement. However, this right only applies to transfers to defined-benefit schemes from 6 April 2015; transfers to defined-contribution schemes and overseas schemes are prohibited.

This note covers transfers that are not made under the Public Sector Transfer Club arrangement (i.e. it covers non-Club transfer values or 'CETVs').

The circumstances under which members are entitled to take a CETV are set out in the regulations.

The calculation date used to calculate a CETV is defined as the 'guarantee date'. This date is relevant for the purposes of determining a member's age (taken as age last birthday at guarantee date in complete years) and for applying revaluation (from date of leaving to guarantee date).

All relevant indexations (specific to AFPS15) are applied to the CARE pension from the date of leaving to the date of transfer (i.e. any in-service revaluation not yet applied up to the date of leaving and any deferred revaluation from the date of leaving to the date of transfer). Note that the revaluations will in effect only apply up to the end of the last complete financial year prior to transfer.

When calculating cash equivalents for divorce purposes, see the Pension Sharing on Divorce guidance for the Armed Forces Pension Scheme for further details of the benefits to be allowed for.

For deferred members entitled to deferred benefits from SPA, the transfer value should be calculated in accordance with the standard procedures for calculating CETVs.

For reference, the tables from the consolidated factors workbook for calculating CETVs are:

• Table 202 - for deferred benefits payable from age 65
• Table 203 - for deferred benefits payable from age 66
• Table 204 - for deferred benefits payable from age 67
• Table 205 - for deferred benefits payable from age 68

The cash equivalent for either an active not entitled to immediate benefits or a deferred member should be calculated as follows:

CETV = (MP x F_p) + (SUR x F_sur)

MP = member's deferred pension (including Added Pension)

SUR = pension payable on the death of the member to their spouse or partner

F_p = factor for member's pension - Table 202, 203, 204 or 205 from the consolidated factors workbook

F_sur = factor for survivor's pension - Table 202, 203, 204 or 205 from the consolidated factors workbook

The appropriate factors should be taken from the tables in force at the relevant date, using the member's age at that time and their SPA as given by stated Government policy at that time.

Following the requirement to equalise GMPs, GMP adjustment factors should no longer be applied in calculations for members who reach State Pension age (SPA) on or after 6 April 2016. We have therefore removed reference to the GMP adjustment in the above formula.

If factors are needed for a case where the member reached State Pension Age before 6 April 2016, please refer the case to GAD.

If a member has a non-integer pension age, then more than one factor is required and these factors are interpolated to obtain the actual factor to use.

For a member with a non-integer DPA of Y years and M complete months, who requires the use of a factor at age N, interpolation between two DPA tables will be necessary. The formula to use is as follows:

Factor(age N, DPA(Y, M)) = Factor(age N, DPA(Y)) + (M/12) x [Factor(age N, DPA(Y+1)) - Factor(age N, DPA(Y))]

We have simplified the presentation of the interpolation formula, but the effect of the formula is the same as the old formulation i.e. it gives the same answer, so there is no need to update administration systems.

Both the member's pension factor and survivor's pension factor should be interpolated using the above formula.

Where a member transfers out of AFPS15 and has some linked benefits in the Armed Forces legacy schemes, the legacy scheme benefits will be transferred out at the same time. The transfer value from legacy schemes should be calculated separately using the appropriate guidance.

The transfer value should be calculated in two stages.

• Firstly, the transfer value should be calculated ignoring the pension debit.
• Secondly, the value of the pension debits should be each calculated as the transfer value of a deferred pension of the same amount as the debit. The CETV is the gross transfer value less the value of the pension debits.

Scheme pays debits should be calculated as the transfer value of a deferred pension of the same amount as the debit. Similarly to divorce debits, scheme pays debits should be subtracted from the gross transfer value.