The formulae for calculating alpha scheme CETVs (i.e. values of non-Club transfers out) are set out below.

The factor tables for the purpose of these calculations are provided for the range of pension ages which apply to members who join the alpha scheme.

The factors should be selected according to the member's age last birthday, sex, pension age and for the revaluation factor, the number of 1 Aprils falling between the calculation date and pension age.

If a member has a non-integer pension age then more than one factor is required and these factors are interpolated to obtain the actual factor to use.

Members may have benefits with different pension ages (e.g. some benefits payable from normal pension age (NPA) and some payable from an effective pension age (EPA)). In such a case, different factors should be used for the separate tranches of benefit. Normal pension age is defined as a member's state pension age (or 65, if that is higher) in the alpha section. For the purpose of this guidance, a member's expected NPA in the alpha section is as defined in legislation.

To calculate the value of the benefits, the deferred member's pension and deferred partner's pension should be calculated. Each element is multiplied by the relevant factor and the result multiplied by the appropriate revaluation factor.

In accordance with scheme regulations the sum of all member contributions and payments for extra pension made by the member; plus the sum of all transfer payments received by the alpha scheme in relation to the member should be compared to the initial calculation of the transfer amount and the larger amount taken as the final CETV amount.

For calculating CETVs, the following formula should be used. Separate calculations should be done where members have benefits with different pension ages (e.g. because the member has purchased an EPA on some of their benefits) and the resultant answers added together to give the total CETV.

CETV = [(P x F_x^P) + (S x F_x^S)] x F_y^Reval

Where:

P is the member's deferred pension at the relevant date

S is the partner's pension at the relevant date

F_x^P is the member's pension factor for a member aged x last birthday at the relevant date, taken from table P2CETV65, P2CETV66, P2CETV67 or P2CETV68 (Tables 0-201 to 0-204 of the consolidated factors workbook) depending on the member's NPA or EPA, as appropriate.

F_x^S is the partner's pension factor for a member aged x last birthday at the relevant date, taken from table P2CETV65, P2CETV66, P2CETV67 or P2CETV68 (Tables 0-201 to 0-204 of the consolidated factors workbook) depending on the member's NPA or EPA, as appropriate.

F_y^Reval is the revaluation factor for a member with y 1 Aprils before NPA / EPA as at the relevant date, taken from table REVAL (Table 0-001 of the consolidated factors workbook)

Guidance prior to October 2019 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 alpha scheme. This adjustment was removed in 2019 for all members reaching state pension age after 6 April 2016 following the requirement to equalise GMPs. Please contact GAD if a GMP value is required for a particular case.

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.