Standard benefits
For Standard members entitled to deferred benefits from age 65 the transfer value should be calculated using the following formula.
(CP + APBPen) x FP + (SUR + APBSUR) x FSUR
Where:
CP - member's pension
APBPen - Additional pension from CPD contributions or LSI
SUR - pension payable on the death of the member to their partner
APBSUR - Additional pension payable on the death of the member to their partner from CPD contributions or LSI
FP - factor for member's pension - Table 203, 204 or 205
FSUR - factor for survivor's pension - Table 203, 204 or 205
Special benefits
For Special members entitled to deferred benefits from age 60 the transfer value should be calculated using the following formula.
(CP + APBPen) x FP + (SUR + APBSUR) x FSUR
Where:
CP - member's pension
APBPen - Additional pension from CPD contributions or LSI
SUR - pension payable on the death of the member to their partner
APBSUR - Additional pension payable on the death of the member to their partner from CPD contributions or LSI
FP - factor for member's pension - Table 206 or 207
FSUR - factor for survivor's pension - Table 206 or 207
If the member has received a transfer in of benefits from another scheme, then an underpin applies to the CETV. The underpin is calculated using the following formula:
Underpin = TVActSer + TVIn
Where:
TVActSer - the transfer value based on actual service, calculated in accordance with the paragraphs below
TVIn - the value of the previous transfer in, calculated in accordance with the paragraphs below
The transfer value based on actual service is calculated in accordance with the formulae above as appropriate, but the value of the benefits is based on reckonable service in the NFPS ignoring any service credit in respect of the previous transfer in. The member's pension (CP) and the pension payable on the death of the member to their spouse or partner (SUR) should be recalculated using the lower service figure.
The value of transferred in service TVIn is usually the total of previous transfer values received by the fire pension administrator but there are some exceptions. The value to use for different type of transfer in are as follows:
- where the transfer in was a statutory CETV (i.e. non-Club transfer), TVIn is the transfer value that was received
- where the transfer in was a Club transfer, TVIn is the transfer value that was received
- where the transfer in was from the Firefighters' Pension Scheme 1992 (FPS) on the special conversion terms available from that scheme in certain circumstances, TVIn is the CETV that would otherwise have been available on the effective date of the transfer
- where the transfer in was from a bulk transfer into the NFPS, TVIn is the CETV that would have been available from the member's previous scheme at the date of transfer
If more than one transfer in has been received, TVIn should be the sum of the specified figures for all the transfers received.
If the underpin calculated in Underpin in respect of previous transfer in is greater than the transfer value calculated in Calculation of statutory CETV, then the transfer value should be increased so that it equals the underpin.
We understand that there is no requirement to provide the value of the GMP on transfer values and therefore we have not included the calculation methodology or factors in this guidance. Please contact the Government Actuary's Department (GAD) if a GMP value is required for a particular case.
If a pension debit member requests a statutory CETV, the member's benefits should be calculated as at the guarantee date, initially ignoring the pension debit. The pension debit should be revalued to the guarantee date and deducted from the member's benefits. The transfer value quotation should be based on the benefits after subtraction of the debit.
Once a statement of entitlement request is received from the member, an initial CETV quote should be prepared as directed by thisguidance, and provided to the member. This communication should inform the member that if they wish to confirm their intention to transfer out they must cease paying periodic contributions as at that date.
If the member responds to the statement of entitlement by confirming that they wish to transfer out:
- no recalculation of the CETV will be required if no periodic contributions have been paid between the CETV guarantee date and the date the member's response is received, and the transfer out should be processed based on the statement of entitlement quote provided.
- the CETV should be recalculated if any periodic contributions have been paid between the CETV guarantee date and the date on which the response is received.
HO has previously confirmed that, if necessary under this scenario, a second statement of entitlement quote can be provided to the member.
For transfers between fire authorities in the same country i.e. transfers from one English Fire authority to another, the member's service record should be transferred but there is no requirement to calculate a transfer value or to make a transfer payment. Transfers to fire authorities in another country i.e. from England to another Fire authority in Scotland, Wales and Northern Ireland require the calculation and payment of a transfer value. The member's service should be transferred. The calculation of a service credit is not required.
