This guidance is addressed to the Lord Chancellor in their capacity as the Scheme Manager of the New Judicial Pension Scheme 2015 (NJPS 2015), which came into force on 1 April 2015 under the Judicial Pension Regulations 2015 ("the Regulations").

The purpose of this guidance is to provide the Lord Chancellor with guidance on how early payment reduction buy out costs should be calculated in the NJPS 2015.

In cases of retirement before normal pension age, the cost of buying out the early payment reduction is an amount determined by the scheme manager after consulting the scheme actuary. This guidance is issued by the Government Actuary's Department (GAD), acting in its capacity as scheme actuary.

This guidance is applicable to benefits accruing in the NJPS 2015 only and provides advice on calculation of the cost of early retirement payment reduction buy out for eligible members opting to buy out the early payment reduction in the event of retirement before normal pension age.

Pension credit members who opt to buy out their early payment reduction should be referred to GAD.

The early payment reduction buy out option may impact a member in relation to their annual allowance. This should be dealt with in accordance with the latest guidance.

This guidance note refers to factors from the latest available NJPS 2015 Early Payment of Pension and the NJPS 2015 Purchase of Additional Pension guidance notes. In all cases, the latest available guidance should always be used.

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.

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.

This guidance note is applicable to benefits accrued in JPS 2015 only. The factors and guidance associated with this option should not be applied in respect of any benefit accrual in the JPS 2022 scheme.

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.

McCloud considerations

Members eligible for remedy under the McCloud judgment make a choice 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.