Those in receipt of scheme benefits do not have an entitlement to a CETV. The pensioner cash equivalent can be calculated using the method and factors in this section, but should be used for divorce purposes only.

There are two sets of tables:

The age of the member should be taken at the calculation date (see Cash equivalents on divorce: general considerations).

Benefits should also be taken at the calculation date. In particular, the member's pension should be the current annual rate of pension payable and the partner's pension should be the annual rate which would be payable if the member died on the calculation date (for this purpose, it should be assumed that an eligible partner exists). The last increase should be that awarded up to and including the April increase immediately before the calculation date.

For the subset of members who reached State Pension age before 6 April 2016 and have an accrued GMP, the cash equivalent needs to be adjusted to reflect increases on the GMP that are the responsibility of the State. Further details are set out in Adjustments for Guaranteed Minimum Pension. For these members, separate pre and post 1988 GMP figures need to be used. The amounts to use are the current annual amounts of GMP in payment at the calculation date. No adjustment should be applied to the cash equivalent for any other members.

The pensioner cash equivalent (CE) should be calculated as:

CE = (P x F_x^P) + (S x F_x^S) - (G^pre x F_x^Gpre + G^post x F_x^Gpost)

Where:

P is the current member's annual pension at the calculation date

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

G^pre is the annual pre-88 GMP at the calculation date (for members who reached SPA before 6 April 2016) or zero (for members who reached SPA on or after 6 April 2016)

G^post is the annual post-88 GMP at the calculation date (for members who reached SPA before 6 April 2016) or zero (for members who reached SPA on or after 6 April 2016)

F_x^P is the member's pension factor

F_x^S is the partner's pension factor

F_x^Gpre is the pre-88 GMP factor

F_x^Gpost is the post-88 GMP factor

The factors are taken from Table P2CENH1 or P2CEIH1 as appropriate, based on a member aged x last birthday at the calculation date.