The benefit provided to the ex-partner (or pension credit member) is a pension payable from age 60 years. This applies to a pension credit member even though the pension debit member may have nuvos benefits or their own personal pension age.

The ex-partner may be entitled to a retirement lump sum equivalent to three times their pension if the pension debit member has classic benefits and had not taken a retirement lump sum prior to the date of the pension sharing order. In such a case, a classic pension credit member benefits consist of a pension plus a lump sum of three times that pension.

The benefits can be paid immediately if the ex-partner is already above age 60 years at the calculation date and the calculation of pension credit to pension allows for this.

Where relevant, for the remainder of this guidance 'CE' (or 'cash equivalent') should be taken to mean either a cash equivalent transfer value on divorce or a pensioner cash equivalent on divorce calculated in accordance with the cash equivalents on divorce guidance for PCSPS(NI) members.

The calculation of the pension to be awarded to an ex-partner (or pension credit member) requires an input of the pension credit (i.e. share of the CE awarded to the ex-partner) determined from the pension sharing order. The calculation formula depends on which PCSPS(NI) section the divorcing member is in.

• For a divorcing classic member whose retirement lump sum has not been paid, the calculation of the pension to be awarded to the pension credit member should be determined as follows:

Formula 1: classic (lump sum not paid)

Pension = Pension credit / (Factor + 3 x Lump sum factor)

A retirement lump sum (of three times the pension) is also payable.

• For a divorcing classic member whose retirement lump sum has been paid (even under partial retirement), or a divorcing classic plus or premium member, the calculation of the pension to be awarded to the pension credit member should be determined as follows:

Formula 2: classic (lump sum paid), classic plus and premium

Pension = Pension credit / Factor

• For a divorcing nuvos member, the calculation of the pension to be awarded to the pension credit member should be determined as follows:

Formula 3: nuvos

Pension = Pension credit / (Factor x Revaluation factor)

Where:

Pension credit is the share of the cash equivalent following a pension sharing order.

Factor depends on the age (complete years) of the ex-partner (the pension credit member) at the calculation date. The Factor should be taken from Table P1PCCP1 for a classic, classic plus or premium pension credit member or from Table P1PCNU1 for a nuvos pension credit member. Tables P1PCCP1 and P1PCNU1 correspond to Tables 1-307 and 1-308 respectively in the consolidated factors workbook.

Lump sum factor depends on the age (complete years) of the ex-partner (the pension credit member) at the calculation date. The Lump sum factor should be taken from Table P1PCCP1 (Table 1-307 in the consolidated factors workbook).

Revaluation factor depends on the number of 1 Aprils between the calculation date and the pension credit member's NPA (i.e. age 60 years). The Revaluation factor should be taken from Table 1-001 in the consolidated factors workbook.

When the pension credit is converted to a pension for an ex-partner who is over age 60 years at the date of calculation, then the Revaluation Factor should be treated as 1.0000.

The factors used to calculate the benefits for the ex-partner should be consistent with the factors used to calculate the CE (and hence Pension Credit). If there is any doubt over which factors should be used, please contact GAD.

A PCSPS(NI) pension credit member who retires early (i.e. before age 60 years) will have their pension credit related benefits reduced for early payment. The early payment reduction will be applied to the pension credit member's benefits in line with the early retirement guidance assuming that it applies to a PCSPS(NI) pension credit member's benefits. Please refer to the early retirement guidance for PCSPS(NI) members.

Alternatively a pension credit member retiring early can buy out the actuarial reduction. The actuarial reduction buyout factors will be applied to the pension credit member's benefits in line with the actuarial reduction buyout guidance assuming that it applies to a PCSPS(NI) pension credit member. Please refer to the guidance for actuarial reduction buyout (ARBO) from PCSPS(NI), for all members except those retiring before age 55 whose deemed date for pension increases occurs before the date of early retirement.

A pension credit member who retires after their 60^th birthday is paid arrears of their pension backdated to their 60^th birthday (or backdated to the date of pension sharing order, if the pension credit member was over age 60 years at that time).

A pension credit member who has entitlement to a retirement lump sum by virtue of a conversion of pension credit to pension can choose to commute their lump sum for a pension. Such cases should be referred to GAD.