A transfer value may only be paid in accordance with the 2015 Scheme Regulations and the provisions of the Pension Schemes Act 1993.

The relevant date for calculating a transfer value is the "guarantee date" as defined in The Occupational Pension Schemes (Transfer Values) Regulations 1996.

A transfer value should be guaranteed for three months from the guarantee date. If a request to pay the transfer value is made within three months of the guarantee date, it will not be necessary to recalculate the transfer value, provided the payment is made within 6 months of the guarantee date. If the payment is not made within that time, administrators must, for a CETV in accordance with the Occupational Pension Schemes (Transfer Values) Regulations 1996, pay the larger of:

1. the recalculated transfer amount as at the date of payment, and
2. the original amount, increased with interest for the period between the guarantee date and the date of payment, calculated on a daily basis at an annual rate of 1% above base rate.

The benefits to be valued for serving firefighters are those that would be payable if the member had left service on the date of the calculation.

The benefits to be valued for a deferred member should include revaluation to the guarantee date. The accrued pension benefits should be calculated at the last day of service, and then increased in line with Pensions Increase (Review) Orders.

The pension amount and factor for the survivor's pension do not depend on whether or not the member has a partner who would qualify for a survivor's pension in the event of the member's death.

The 2015 Scheme Regulations provide for a deferred pension to be payable without reduction for early payment from the higher of age 65 and the member's State Pension Age.

For the purpose of calculating transfer value factors, a member's expected NPA in the 2015 section is as defined in legislation. Factors are provided to accommodate the range of deferred pension ages members will have in relation to service on and after 1 April 2015.

Where a member has a non-integer normal pension age, then factors should be interpolated using the following method.

For a member with a normal pension age of X years and Y months the main pension factor would be:

Interpolated factor = Factor at NPA(X) + (Y/12) x [Factor at NPA(X+1) - Factor at NPA(X)]

We have simplified the presentation of the interpolation formula, but the effect of the formula is the same as the old formulation i.e. it gives the same answer, so there is no need to update administration systems.

For members with a pension debit resulting from divorce and/or a pension offset resulting from a "Scheme Pays" election, the transfer value is calculated in two stages as described in the paragraph below.

First, a gross transfer value should be calculated ignoring the pension debit and/or the pension offset. Second, the value of the pension debit and/or pension offset should be calculated (i.e. the transfer value of a deferred pension of the same amount as the pension debit or offset applicable at deferred pension age). The transfer value quoted and paid is the net amount: the gross transfer value less the value of the pension debit and/or offset.

The results of each element of the calculation above should be passed to the receiving scheme. The transfer value paid is the net amount: the gross transfer value less the value of the pension debit and/or offset.

A member may be receiving pension benefits whilst still accruing further benefits, for example after exercise of a partial retirement option. If such a member leaves service and requests a CETV (for the purposes of transferring a pension, not for divorce purposes) then the CETV should allow only for the deferred benefits but not the benefits in payment. The benefits in payment may not be transferred, and would only be considered when calculating a CETV for divorce purposes.

Where a member takes up employment with a different fire authority within Wales, (but not one within Scotland, England or Northern Ireland) 2015 Scheme Regulations provide, in certain circumstances and under certain conditions, for the member's pension account to be transferred between the relevant fire authorities. If a member's pension account is transferred in this way, there is no requirement to calculate a transfer value or to make a transfer payment. The calculation of a transferred pension credit by the receiving authority is not required.