This note is provided for the Welsh Government as the responsible authority of the Firefighters' Pension Schemes in Wales and sets out the general method for calculating:

• a cash equivalent for a pensioner member on divorce
• assessing pension credit calculations for the ex-partner (which refers to any eligible previous partner in the 1992 scheme i.e. ex-spouse, ex-civil partner) on divorce
• calculating the pension debit applicable to a member's pension following the implementation of a Pension Sharing Order and the application of the pension debit at retirement

in the Firefighters' Pension Scheme (Wales) 1992.

This guidance should be used both when a member applies for a quotation of the value of the benefits during the divorce proceedings, and after a pension sharing order has been made.

This guidance should not be used for determining pensioner cash equivalents on divorce, pension credits and pension debits for those in the Firefighters' Pension Scheme (Scotland) 1992 (see separate guidance).

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.

For the Wales authorities, this guidance is designed to be consistent with the Welfare Reform and Pensions Act 1999 ("the Act") and associated regulations (principally the Pension Sharing (Implementation and Discharge of Liability) Regulations 2000.

This guidance relates only to benefits accrued under the 1992 Scheme Regulations for Wales, hereafter referred to as "the 1992 scheme". Some firefighters may also have benefits under the 2015 Scheme or the NFPS which should be dealt with separately according to relevant scheme guidance.

The remainder of this note is split into the following sections:

• "Adjustment for Guaranteed Minimum Pension" sets out the current approach to be used when making an adjustment to cash equivalents in respect of GMPs.
• "Cash equivalents, pension credits and pension debits on divorce: general considerations" provides general guidance on the application of actuarial factors when calculating cash equivalents, pension credits and pension debits for divorce purposes.
• "Calculating the cash equivalent for members already in receipt of benefits" contains instructions on how to calculate cash equivalents for divorce purposes for members who are already in receipt of benefits.
• "Calculating the cash equivalent for active and deferred members" contains guidance on how to calculate cash equivalents for divorce purposes for active and deferred members.
• "Calculation of pension credits" sets out the calculation of pension credits.
• "Calculation of pension debits" sets out the calculation of pension debits.
• "Unusual cases" sets out some of the special cases that might arise and how these should be processes.