This guidance is provided for use by the National Health Service Business Authority (NHSBSA) as administrator of the National Health Service Pension Scheme ('NHSPS'). It sets out how to determine an appropriate statutory (i.e. non-Club) cash equivalent transfer value (CETV).
No advice or factors issued for National Health Service Pension Scheme 2015 ("NHSPS 2015") should be used to calculate CETVs in respect of NHSPS benefits.
Where a member has benefits in both the NHSPS and the NHSPS 2015, benefits should be treated separately and two CETVs quoted.
This Note contains guidance on the use of CETV factors determined following advice from the Scheme Actuary as referred to in the Scheme regulations.
Factors are unisex. However, we have provided tables in the same format as the previous guidance and thus retained sex-dependent tables.
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.
This guidance covers the calculation of statutory CETVs only, including the calculation of transfer values payable for members transferring from the 1995 section to the 2008 section. It also covers the calculation of CETV for members exercising the right to request a transfer from the NHSPS to the NHSPS 2015.
This guidance should not be used for Club transfer values, bulk transfer cases, refunds of contributions or for any members with benefits in payment or entitlement to immediate benefits with no actuarial reduction. However, there is some interrelation of methodology and factors used to be for CETVs and Cash Equivalents for divorce purposes.
The factors set out in this guidance are different from those made under the terms of the Public Sector Transfer Club.
Any current cases where a CETV is required for a member reaching State Pension age before 6 April 2016 should be referred to GAD.
In some circumstances the calculation of Cash Equivalents and Pension Credits are covered in the Divorce Guidance rather than in this guidance.
| Circumstances | Covered in this Note | Covered in Divorce Guidance |
| Current pensioners* | No | Yes |
| Deferred members < NPA | Yes | No |
| Deferred members > NPA* | No | Yes |
| Current active members <NPA | Yes | Yes |
| Current active members > NPA* (including those with entitlement to immediate benefit without reduction) | No | Yes |
| Pension debit members | Yes | No |
| Pension credit members | No entitlement | No entitlement |
| Special cases | ||
| Deferred members < NPA , made redundant from special class status | Yes | No |
| Members with reserved rights to a CETV based on historic factors (if better) | Yes | No |
| Male Nurses with some benefits in payment & some preserved | Yes | Yes |
*Cash equivalent quotes are provided for divorce purposes only; no entitlement to CETV
