In any divorce proceedings dealing with the division of matrimonial assets, the parties are required to disclose to each other and to the Court, all their financial interests. This will include details relating to pension benefits that are shareable regardless of whether a pension sharing order will eventually be made.

The calculations set out in this note determine the value of pension rights for a member's benefits in the JPS2022 scheme, as required for the divorce proceedings. If the other party in the divorce proceedings also has JPS2022 scheme benefits, then separate valuations are required in respect of those pension rights.

The calculations required and the factor tables used depend on the status of the member at the calculation date, including their age, gender, normal pension age and the date on which they will reach (or did reach) State Pension age.

There are two dates which are of relevance when determining a cash equivalent transfer value for divorce purposes: Transfer day and Valuation day.

The Welfare Reform and Pensions Act 1999 (the 1999 Act) defines the Transfer day as the day on which the pension sharing order takes effect (The Transfer day is sometimes also referred to as the Effective date).

The 1999 Act defines Valuation day as a day within the Implementation Period for the discharge of the pension credit as the administering authority may specify by notice in writing to the transferor and transferee. The 1999 Act defines the implementation period as the four-month period that starts on the Transfer day, or if later, on the date the pension scheme has the prescribed information needed to implement the pension sharing order. (The Valuation day is sometimes referred to as the Implementation date).

The calculation of the cash equivalent should be based on the status of the member at the Transfer day i.e. whether they are an active, deferred or pensioner member at this date. The age and the benefits of the member should also be taken at this date, as described later.

If a quotation is required for part of the proceedings, in Scottish cases, the calculation date will usually be specified by the Court. For divorces in England, Wales and Northern Ireland, the calculation date used should be consistent with the date used for normal transfer value calculations (i.e. the guarantee date).

If the calculation is being done after a pension sharing order has been made, the calculation date is the Transfer day, as defined above.

Where a calculation is being performed for quotation purposes, the calculation date should be taken at the date when a request was received.

Factors should be selected with reference to the member's status and age last birthday at the calculation date, which should be determined in line with the section above.

For calculations being completed after a pension sharing order has been made, there may be some time between the calculation date (which should be the day on which the relevant order or provision takes effect) and the date on which administrators process the calculation (sometimes referred to as the "valuation day", as defined in the 1999 Act). In some cases, it's possible that different sets of factors will be in force on the two dates. In these circumstances, the set of factors that are in force on the day administrators process the calculation should be used. Individual factors should be selected from this factor set with reference to the member's or ex-partner's status and age last birthday at the calculation date, in the normal way.