For those members who have not made an early retirement reduction buy-out (ERRBO) election, the CARE Club transfer out payment should be calculated using the approach set out in the Club Memorandum and the following section is not applicable.

If a member has paid ERRBO contributions to the NHS Pension Scheme 2015 (Scotland) to secure unreduced terms on retirement before NPA, the club transfer amount will include allowance for this provision. On club transfer, such entitlement should be converted into additional pension payable from the receiving scheme's NPA. The earlier retirement provisions are not carried across to the receiving scheme.

Please refer to the Government Actuary's Department (GAD) where a member with an ERRBO is taking a Club transfer at an age above their lowest Reduced Retirement Age.

The requirement for this allowance is set out in the Club Memorandum. However, as the Club Memorandum does not set out explicit details on the approach to use, the approach to adopt is set out below.

The Examples section of the Club Memorandum sets out the information the 2015 NHS Pension Scheme (Scotland) will need to send to the receiving scheme.

The NHSPSS 2015 scheme will convert the value of the member's entitlement into additional pension payable from the receiving scheme's NPA, as the early retirement provisions are not carried across to the receiving scheme. The member's accrued NHS pension needs to be uplifted to convert this into an amount payable from the receiving scheme's NPA.

Set out below is the method that should be used to calculate the uplifted pension amounts. As required in the Club Memorandum, the adjusted figures should be quoted allowing for in service revaluation and deferred revaluation respectively. These uplifted amounts will be taken into account for the purposes of determining the pension credit payable from the receiving scheme's NPA. The unadjusted figures can be used to explain how the member's pension has been uplifted to allow for their buy-out election.

1. The annual amount of the transferring member's NHSPSS 2015 pension, revalued in accordance with the NHSPSS 2015 scheme's in-service revaluation method, up to the guarantee date for the transfer = £PENS pa
   
   The uplifted annual amount of the transferring member's NHSPSS 2015 uplifted pension, revalued in accordance with the NHSPSS 2015 scheme's in in-service rate to date of calculation = £PENS / ERF1 (From 'NHSPSS 2015 : Voluntary Early and Late retirements in normal health : Guidance and factors') = £PENS(adj) pa
   
   
2. The annual amount of the transferring member's NHSPSS 2015 pension, revalued in accordance with the NHSPSS 2015 scheme's in-deferment revaluation method, up to the guarantee date for the transfer = £PEND pa
   
   The uplifted annual amount of the transferring member's uplifted NHSPSS 2015 pension, revalued in accordance with the NHSPSS 2015 scheme's in in-deferment rate to date of calculation = £PEND / ERF1 = £PEND(adj) pa

Where: ERF1 is the Early Retirement Factor applicable for the period between the member's NPA at the date of calculation to the member's reduced retirement age (RRA) (See 'NHSPSS 2015 : Early retirement reduction buy-out (ERRBO) : Guidance and factors'), rounded up to the next month.

Where an ERRBO agreement was not in place for all membership, or if the agreement was subject to an increase at any time, pension for each NPA or RRA should be adjusted separately.

The spouse/partner's pension proportion should be calculated as:

33.75% x PENS / PENS(adj)

The total club transfer amount should be determined using PEND(adj) as determined above. The formula to be used is as set out in the Transfers out of Club schemes section of the Club Memorandum i.e.:

(MP x F_p + CWP x F_wid) x F_careadj

Where:

MP = PEND(adj)

CWP = Pension payable to a surviving dependant on the member's death (regardless of partnered status) including in-deferment revaluation to the date of calculation

F_p = As taken from tables 3 to 8 of the club memorandum as applicable for the member's age and NPA at date of calculation.

F_wid = As taken from tables 3 to 8 of the club memorandum as above.

F_careadj = As taken from table 9 of the club memorandum for CARE revaluation CPI+ 1.5%, based on complete years to NPA

To identify the amount attributable to the ERRBO, determine the above with

MP = PEND

And take the difference between the two amounts calculated. This is the amount to be provided in accordance with the Club Memorandum.