This guidance is addressed to the Department of Finance (DoF) as scheme manager of the Civil Service and Others Pension Scheme (Northern Ireland) (or the alpha scheme).

The purpose is to provide the scheme manager with guidance on calculating a reduction to benefits ('pension offset') in the alpha scheme following an election by a member of the alpha pension scheme for an annual allowance charge to be met by the scheme (known as 'scheme pays').

This guidance does not cover the method for determining the amount of any Annual Allowance charge.

The following changes have been made when reviewing this guidance:

• Important information around the expected audience for the guidance, use of the guidance, review of factors, compliance and limitations applies across all sets of guidance. Rather than being repeated in each set of guidance, this can now be found on the scheme home page. It is important to read this information alongside the guidance.
• Calculation methodology: Clarification of the approach to take for members who have already retired but not yet commenced payment has been added to the section Calculating the offset when the member has already retired.
• Examples: There are no examples in this guidance. Worked examples, using the calculation methodology, can be found in prior versions of the guidance (though please note that these use historic factors).
• Factor tables: The "Factor Tables" tab contains the names of the tables that are referenced in the calculation methodology. The tables of factors themselves can be found in the most recently published "Consolidated Factors Workbook" which is available by clicking the "Download current Consolidated Factors Workbook" button on the scheme's home page.
• Assumptions: The key assumptions underlying the factors in each note are contained in the Consolidated Factors Workbook.
• Regulations: The regulations that require the production of the actuarial factors and/or guidance that is the subject of this note are summarised in the "Regulations" tab.

This guidance relates only to the calculation of annual allowance pension offsets in the alpha scheme. Separate guidance covers the calculation of annual allowance pension offsets in the classic, classic plus, premium and nuvos sections of the Principal Civil Service Pension Scheme (Northern Ireland).

The scheme pays mechanism will not be available to all members incurring Annual Allowance charges and scheme administrators will need to ensure a member's eligibility before applying the approach set out in this guidance.

We do not envisage any other special cases not covered by this guidance. However, if any do occur they should be referred to the Government Actuary's Department (GAD).

As a result of McCloud remedy, some members may have a new or revised annual allowance tax charge for one of the years during the remedy period (2015 - 2022) which may be determined/notified to the scheme after the date of publication of this guidance. This guidance is not to be used to determine debits in relation to any such charges, please refer to the separate guidance on scheme pays for McCloud eligible members for the correct approach.