This guidance is addressed to the NHSBSA as administrator of the National Health Service Pension Scheme 2015 ('NHSPS 2015' or the 'Scheme'). 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 ("NHSPS") should be used to calculate CETVs in respect of NHSPS 2015 benefits.
This note contains guidance on the use of CETV factors determined following advice from the Scheme Actuary as referred to in the NHSPS 2015 Regulations.
Where a member has benefits in both the NHSPS and the NHSPS 2015, benefits should be treated separately and two CETVs quoted.
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. It should not be used for club transfer values, bulk transfer cases, refunds of contributions or for any member with benefits in payment or entitled to immediate benefits with no actuarial reduction (for example members over their Normal Pension Age ('NPA')). However, there is some interrelation of methodology and factors used to be for CETVs and Cash Equivalents for divorce purposes.
Where CETVs are required for pensioner members due to divorce proceedings please refer to the guidance 'National Health Service Pension Scheme: Pension sharing on Divorce'.
The factors set out in this guidance are different to the ones provided for transfers made under the terms of the Public Sector Transfer Club.
