This guidance is addressed to Cabinet Office as scheme manager of the Principal Civil Service Pension Scheme (PCSPS or the scheme).

The purpose is to provide Cabinet Office with guidance on how to calculate the additional reduction required under the scheme rules to be made to a classic plus member's refund of Widow(er)'s Pension Scheme (WPS) contributions where the member's pension comes into payment before age 60 (the additional reduction).

Initial reduction

Under the scheme rules, the refund of WPS contributions is first reduced by deducting "20% of the annual value of the widow's guaranteed minimum pension that would have been payable". This deduction is modified to take account of periods where the member was previously married or had previously taken a transfer into the scheme - please refer to the scheme rules to calculate this deduction - this guidance does not cover the calculation of this initial deduction.

Additional reduction

Under the scheme rules, an additional reduction to the refund of WPS contributions may apply where the member's pension comes into payment before age 60. This guidance sets out the calculation of the additional reduction.

Cabinet Office has confirmed that the additional reduction should be determined separately for members retiring in ill-health. The additional reduction for members retiring in ill-health is greater than that for members retiring in normal health, reflecting the longer period that a widow(er)'s pension is expected to be paid for should the member (re)marry in retirement.

This guidance only relates to benefits in the classic plus section of the PCSPS. Separate guidance applies for benefits in the classic section of the PCSPS.

This guidance should not be used in relation to benefits held in the premium, nuvos or alpha sections of the scheme.

This guidance does not describe the method for determining the amount of any (unreduced) refund of WPS contributions.

This guidance only applies for cases where the member's pension comes into payment before age 60.

We do not anticipate any special cases not covered by this guidance. However, if any do occur, they should be referred to the Government Actuary's Department (GAD).

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.