The information contained here and in the drop down boxes below is important. It applies to all material on the GAD Factors Guidance Hub and should be read in conjunction with each of the individual sets of factors and guidance.
The factors and guidance have been prepared for the use of relevant Public Service Pension Scheme (PSPS) sponsors / responsible authorities, scheme managers and scheme administrators, in preparing calculations for individual pension scheme members. Because the guidance has been written for these pension professionals, it assumes some knowledge of general pension terminology and some familiarity with benefit calculations for PSPSs.
Any questions concerning the application of the guidance should, in the first instance, be referred to the contact specified in the "Contact us" section of this website specific to each scheme.
Further instructions on how to navigate the site and use the material within it are given in the sections below.
To access guidance from the Scheme Home page, select "Guidance list" in the navigation bar or click
the top button labelled "Guidance list" on the right of this page.
This will take you to a list of all guidance notes available for the scheme, divided into three categories as below. The list may be filtered by guidance type using
the menu on the left of the page.
McCloud eligible members guidance
This area provides guidance for members eligible for McCloud remedy (those with remediable service between 1 April 2015 and 31 March 2022) in PDF format. For such members, where relevant guidance exists, the McCloud guidance should be viewed first as it provides instructions on how to correctly apply the relevant legacy or reformed scheme guidance so that remedy is appropriately incorporated into the calculation.
Exceptions to this are:
- The Judges Pension Schemes, where no McCloud remedy guidance is required due to the nature of the remedy approach for those schemes.
- The Local Government Pension Schemes, for options where McCloud remedy has been incorporated within the current guidance
- The Public Sector Transfer Club, where McCloud remedy has been incorporated within the Club Memorandum.
Current guidance
This area displays the latest available version of guidance, which supersede all prior material and should be used for current and future calculation dates.
All HTML versions of guidance (showing a cloud symbol at the start of the name) came into force on the date of issue set out alongside the link to the guidance. Selecting the link under the heading "Guidance title" will lead you to the guidance content. Please see the Navigating the HTML guidance pages section below for further information on how to use the HTML guidance.
All PDF versions of guidance (showing a PDF document symbol at the start of the name) came into force as shown in the introductory section of the note. Selecting the link under the heading "Guidance title" will take you to the full PDF document. The methodology in the guidance can be used but factors contained within the guidance should not be used.
For all calculations with current or future calculation dates, factors should be taken from the current version of the Consolidated Factor Workbook which can be found by clicking on this title in the navigation bar.
Historic guidance
This provides PDFs of historic guidance notes, containing historic factors, which may be used to facilitate calculation of benefits with historic calculation dates, if this is required. It is the user's responsibility to ensure that the correct historic guidance note with factors in force at the relevant date is selected. It is important to note that the implementation dates for historic guidance and factors may be set out in the introductory sections of some notes, but in many cases this was covered in a separate communication from the sponsoring department / responsible authority, and is not detailed in the note. The date of issue of the historic guidance note is not necessarily the implementation date.
Once you open an HTML version of guidance, four tabs will appear on the right of the navigation bar: Guidance, Factor tables, Examples and Regulations. The sections below explain what they contain and how to use them.
Guidance
The "Introduction" section sets out the purpose of that specific individual set of guidance and the scope of its use. Guidance should not be used for any other purpose.
The sections listed in the menu on the left give the calculation methodology and additional commentary, as required. GAD factor guidance covers the actuarial principles surrounding the calculation of pension benefits in PSPSs. However, it is important to note that we are not lawyers and so our advice does not constitute legal advice. Advice in this area should be sought from an appropriately qualified person or source.
Factor tables
This tab displays the full suite of tables of factors that are referenced in the Guidance section. It shows the name as set out in the calculation methodology, alongside the table names used in the Consolidated Factor Workbook and the descriptive full table name. All tables of factors are contained in the Consolidated Factor Workbook which can be found by clicking on this title in the navigation bar. The implementation date (the date that the factors came into force) for each table of factors is displayed in the “Implementation dates” tab of the Consolidated Factor Workbook. Please be aware that implementation date of the factors will be earlier than the date of issue of the HTML guidance.
For some guidance, the table of factors to use depends on the member's SPA. The methodology section may direct use of the SPA as set out in the latest version of the HMT Directions for Public Service Pension Scheme valuations, otherwise the SPA as set out in current legislation should be used.
For many calculations, unisex factors are used. There may be two identical tables in the Consolidated Factor Workbook, reflecting that systems may have been set up to reference two separate tables. In some cases, the table of factors to use depends on the member's sex (which may be different from the member's gender).
Examples
This tab provides illustrative examples for the type of calculation selected, where available.
Regulations
This tab shows the scheme regulations which require a specific set of actuarial factors and associated guidance, GAD's role in preparing the factors/guidance and the entity with ultimate responsibility for providing factors/guidance.
It also shows any additional scheme specific regulation references and general legislation references contained in the guidance.
You can navigate back to the scheme home page, the Consolidated Factor Workbook or the Guidance list by selecting the relevant section on the navigation bar.
Review of factors
Actuarial factors and guidance are subject to periodic review. Reviews are usually triggered by external circumstances, for example:
- whenever there is a change in the SCAPE basis;
- when other changes in the actuarial assumptions adopted for scheme factors take place;
- following each actuarial valuation where mortality and other relevant experience is reviewed; or
- if other credible and material information comes to light.
GAD will post an announcement on this website if factors and guidance are suspended as a result of a review having been triggered. Scheme sponsors / responsible authorities, managers and administrators will also receive direct communications from GAD in this regard.
Compliance
GAD factors and guidance reflect the regulations and overarching legislation in force at the time that the factors and guidance were last updated. Under no circumstances should the guidance on this website take precedence over the regulations and overarching legislation in force at the time a pension calculation is undertaken. Administrators should ensure that they comply with all regulatory requirements and the Club Memorandum where appropriate. Please report it to the scheme manager or sponsoring department / responsible authority if you believe there to be an inconsistency between the scheme regulations or overarching legislation and guidance contained herein.
Administrators should also ensure that they comply with all relevant general legislative requirements including but not limited to tax, pensions law, TPR guidance and contracting out requirements.
As mentioned above, factors are periodically reviewed. Scheme managers and administrators should ensure that they are using the latest factors, as instructed by GAD, scheme managers or sponsoring departments / responsible authorities as appropriate, when processing cases.
GAD is able to offer quality assurance of pension administration calculations covered by guidance on this website. Please get in touch with your usual GAD contact if you would be interested in this.
In preparing the factors and guidance GAD have complied with the Technical Actuarial Standards.
Third Party Reliance
The factors and guidance on this website have been prepared for the use of sponsoring departments / responsible authorities, scheme managers and scheme administrators. Links to the GAD Factor Guidance Hub may be published on the relevant sponsoring department / responsible authority, scheme manager and/or the scheme administrator's website. GAD factors and guidance must not otherwise be reproduced, distributed or communicated in whole or in part to any other person without GAD's prior written permission.
Other than sponsoring departments / responsible authorities, scheme managers and scheme administrators, no person or third party is entitled to place any reliance on the contents of the guidance contained on this website, except to any extent explicitly stated herein. GAD has no liability to any person or third party for any action taken or for any failure to act, either in whole or in part, on the basis of the factors and guidance on this website. Third parties should not rely on this guidance, but should separately seek their own actuarial advice where appropriate.
Limitations
The guidance contained on this website does not provide individual member advice relating to the options that are available through any PSPS. Individuals seeking advice on options available from a PSPS should speak to an Independent Financial Adviser.
Advice provided by GAD must be taken in context and is intended to be considered in its entirety, so it is important to ensure that you access all of the relevant information from this website related to your purpose. Aspects considered in isolation may be misleading and conclusions reached by a review of only some parts on their own may be incorrect. GAD does not accept responsibility for advice that is altered or used selectively. Clarification should be sought if there is any doubt about the intention or scope of advice provided by GAD.
