DoF has the flexibility to decide whether to capitalise at date of departure or defer until the individual attains normal pension age. In the absence of notification, the Paying Authority will automatically defer recovery until normal retirement age, which we understand is age 60 for all members.

The capitalisation cost should be calculated as follows:

Capitalisation Cost = ACP at 60 x Factor

Where:

ACP is the annual rate of compensation payment due under the CSCS(NI) rules.

Factor is the member's and dependant's pension factor taken from Table P1TCCL1 (Table 1-502 in the consolidated factors workbook), based on the member's normal pension age. The table applies to both male and female members - i.e. the factors are unisex.