This guidance is addressed to the Department of Finance (DoF) as scheme manager of the Civil Service and Others Pension Scheme (Northern Ireland) (CSOPS(NI) or the alpha scheme).
The purpose is to provide the scheme manager with guidance on how to calculate the amount of extra pension ('transferred pension') to be awarded when a member transfers into the alpha scheme with a non-Club transfer payment.
This guidance does not apply to Club transfers or to non-Club transfers into the classic, classic plus, premium or nuvos sections of the Principal Civil Service Pension Scheme (Northern Ireland).
A cash equivalent may be received by the alpha scheme from another pension scheme and used to provide additional benefits for a member in accordance with Regulations.
The Regulations provide for a restriction on the maximum amount of transferred pension that can be purchased by a non-Club transfer. This test must be made before the transfer is accepted.
If the transfer value includes the member's entitlement to a guaranteed minimum pension (GMP), then a separate calculation to test the sufficiency of the transfer value should be conducted before the transfer is accepted. This guidance does not cover this calculation - please refer any such cases to the Government Actuary's Department (GAD).
We do not envisage any other special cases not covered by this guidance. However, if any do occur they should be referred to GAD.
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: No changes have been made to the calculation methodology.
- 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.
