The formulae for calculating CETVs for classic, classic plus and premium sections (i.e. values of non-Club transfers out) are set out below.

The factors should be selected according to the member's age last birthday, sex and normal pension age (NPA).

To calculate the value of the benefits, the deferred pension, deferred lump sum (if any) and deferred survivor's pension should be calculated (excluding added pension).

The linked service benefits of a nuvos member should be valued as premium benefits with NPA of 65 years.

We understand National Insurance (NI) modification adjustments are no longer needed for CETV calculations. For administrative consistency, we have retained this element in the formula set out below. However, all NI modification factors have been set to zero in the corresponding tables in the consolidated factor workbook.

For calculating CETVs, the following formula should be used:

CETV = (P x F_x^P) + (S x F_x^S) + (LS x F_x^LS) - (NI x F_x^NI)

Where:

P = member's annual deferred pension at the relevant date

S = partner's annual pension at the relevant date

LS = member's lump sum at the relevant date

NI = member's NI modification at the relevant date

F_x^P = member's pension factor for a member aged x last birthday at the relevant date

F_x^S = partner's pension factor for a member aged x last birthday at the relevant date

F_x^LS = lump sum factor for a member aged x last birthday at the relevant date

F_x^NI = NI modification factor for a member aged x last birthday at the relevant date

Previous versions of this guidance included calculation methodology to allow administrators to value the accrued Guaranteed Minimum Pension (GMP), typically for use in cases where the value of the GMP was to be quoted separately or liability for the GMP was to be retained within the PCSPS scheme. We understand that there is no longer a requirement to provide the value of the GMP on transfer values and therefore we have not included the calculation methodology in this guidance. Please contact GAD if a GMP value is required for a particular case.

Some members may have a normal pension age between 60 and 65 years - i.e., their 'personal pension age' (PPA). If a CETV is required for a member with a PPA, please refer the case to GAD, via the Cabinet Office, to obtain appropriate CETV factors.

For members with one or more pension debits resulting from divorce, and/or one or more pension offsets resulting from any "Scheme Pays" elections, the transfer value calculation is calculated as follows:

1. A gross transfer value should be calculated ignoring the pension debits and pension offsets.
2. The value of each pension debit and/or pension offset should be calculated (i.e. the transfer value of a deferred pension of the same amount as the pension offset payable from the relevant NPA)
3. The transfer value quoted and paid is the net amount i.e. the gross transfer value less the value of all the pension debits and pension offsets.