The formula for calculating CETVs for classic, classic plus and premium sections (i.e. values of non-Club transfers out) is 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).

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

S is the partner's annual pension at the relevant date

LS is the member's lump sum at the relevant date

NI is the member's NI modification at the relevant date

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

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

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

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

The factors above should be taken from tables P1CETV60 or P1CETV65 as relevant (Tables 1-206 and 1-207 of the consolidated factors workbook).

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(NI) 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 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.