This note is addressed to the Lord Chancellor in his capacity as the Scheme Manager of the New Judicial Pension Scheme 2015 (NJPS 2015).

The purpose of this note is to provide the Lord Chancellor with specific factors and accompanying guidance to demonstrate how the early payment reduction amounts should be calculated in the NJPS 2015.

The amount of the early payment reduction (if any) is to be determined by the Scheme Manager after consultation with the Scheme Actuary or taking into account tables prepared by the Scheme Actuary, in accordance with the interpretation of 'early payment reduction' and 'actuarial reduction' under the regulations.

Judicial Pension Scheme 2022

The Judicial Pension Scheme 2022 ('JPS 2022') came into force on 1 April 2022. Accrual in the 1981 Judicial Scheme, JuPRA, JPS 2015 and FPJPS schemes ('the legacy schemes') ceased for future accrual with effect from 31 March 2022.

Our guidance assumes that the benefits in the JPS 2015 scheme will be calculated to the appropriate calculation date and will include any pension revaluation (if applicable) as appropriate.

This guidance note is applicable to benefits accrued in JPS 2015 only.

A member may have benefits in both the JPS 2015 scheme and the JPS 2022 scheme. For the purposes of calculating a member's early retirement pension before any commutation option is exercised, the member's pre 2022 and post 2022 early retirement pension should be calculated separately using the relevant guidance and regulations.

McCloud considerations

We understand that members eligible for remedy under the McCloud judgment will make their choice in 2023 about the benefits that they have accrued during the McCloud remedy period (1 April 2015 to 31 March 2022, or date of retirement or leaving if earlier) in an options exercise carried out by the Ministry of Justice (MoJ) and XPS.

This guidance assumes that eligible McCloud members have already made their choice (i.e. whether to accrue benefits on a CARE basis under JPS 2015 or on a final salary basis under JuPRA or FPJPS for the remedy period) and member's benefits recorded on member records in the chosen scheme before any member benefits calculations are performed. Where this is the case, benefits for the McCloud remedy period should be calculated using the relevant section of our guidance notes appropriate to the remedy choice made.

If you require guidance relating to the calculation of member benefits for an eligible McCloud member who has yet to go through the McCloud options exercise, please refer the case 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.