This note is provided for the Ministry of Defence (MoD) as scheme manager of the Armed Forces pension arrangements. It sets out the general method for assessing pension debits and pension credits on divorce for AFPS75, AFPS05 and the Reserve Forces Pension Scheme (RFPS05) in Part A and AFPS15 in Part B. Where a member has pension due to service in more than one scheme, the guidance from the relevant section should be applied to each element of pension separately.

It does not cover in detail the method for determining Cash Equivalent Transfer Values (CETV), Club transfers involving the Armed Forces pension arrangements or the service credits on transfers-in (Club or CETV).

This guidance does not explicitly set out the methodology for the Full Time Reserve Service Pension Scheme 1997 (FTRS PS) or the Reserve Forces Non Regular Permanent Staff Pension Scheme 2011 (NRPS PS). However the methodology is analogous to that set out in this guidance, and relevant factors are included in the Consolidated Factors Workbook. Any queries on FTRS PS or NRPS PS should be referred to GAD.

The tables for use in the calculation of cash equivalents (CE) on divorce are:

• Table 201: CETV factors for a normal pension age of 60
• Table 202: CETV factors for a normal pension age of 65
• Table 203: CETV factors for a normal pension age of 66
• Table 204: CETV factors for a normal pension age of 67
• Table 205: CETV factors for a normal pension age of 68
• Table 301: CE for current pensioner - retirement in normal health / active members entitled to immediate benefits
• Table 302: CE for current pensioner - retirement in ill health

The following tables are linked to the tables in the previous paragraph.

• Table 313: CETV factors on divorce for a normal pension age of 60 - linked to table 201
• Table 314: CETV factors on divorce for a normal pension age of 65 - linked to table 202
• Table 315: CETV factors on divorce for a normal pension age of 66 - linked to table 203
• Table 316: CETV factors on divorce for a normal pension age of 67 - linked to table 204
• Table 317: CETV factors on divorce for a normal pension age of 68 - linked to table 205

This guidance also discusses the factors for use in the calculation of pension credits and for adjusting pension credits and debits on early and late retirement. These factors are consistent with the factors in tables 201-205, 301 and 302.

• Table 306: Pension credit factors for a normal pension age of 60
• Table 307: Pension credit factors for a normal pension age of 65
• Table 308: Pension credit factors for a normal pension age of 66
• Table 309: Pension credit factors for a normal pension age of 67
• Table 310: Pension credit factors for a normal pension age of 68
• Table 311: Adjustment factors for pension credits/debits - retirement in normal health
• Table 312: Adjustment factors for pension credits/debits - retirement in ill health

We have previously provided tables of Adjustment for Market Conditions Factors (AMC factors). These factors are no longer used and so are no longer provided.

All of these factors are "MoD-Controlled" factors so it is MoD's decision whether to update these factors after considering GAD's recommendation.

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.