The next section contains a pro forma which can be used to calculate the ARBO cost for cases covered by this guidance.

The pension 'P' consists of a member's Main Pension, any Added Pension bought and (where relevant) the Transfer In pension. As outlined in the pro forma, pension increases apply to each of these components and different pension increases may be required if different 'Deemed date for PI' are applicable.

The following table gives the sources of the variables defined in the previous sections of this guidance, and their references in the pro forma.

The member's pension at retirement should be calculated before the member commutes pension for lump sum and before offsetting any divorce or scheme pays debits.

The member's unreduced lump sum at retirement should reflect the retirement lump sum a member is entitled to before any commutation takes place.

The reduced lump sum - referenced by (11) in the pro forma - is derived from the lump sum early retirement factor, i.e. the actuarial reduction factor that would apply to the member's lump sum if they received actuarially reduced benefits and did not take up the buy out option.