This section sets out the method and instructions for calculating the pension credit payable to the ex-partner following the issue of a pension sharing order by the Court.

When a pension sharing order is received, the first stage is to check all the necessary information has been provided, check the charges have been paid, and recalculate the amount and the value of the member's benefits before the debit is applied. This should be done using the methods and assumptions set out in the previous sections of this guidance. In particular, it should be based on the age and status of the member at the transfer day, and the benefits in the scheme at that date.

For divorces under English law, the pension sharing order will specify the percentage of the member's benefits that is to be shared. The cash equivalent obtained in the paragraph above should be multiplied by this percentage, to give the value of the ex-partner's benefits, or the ex-partner's cash equivalent.

In Scotland, the pensions sharing order will usually specify a monetary amount, and this should be used as the ex-partner's cash equivalent. The percentage for the pension debit should be calculated as the ratio of the monetary amount and the cash equivalent.

The ex-partner's cash equivalent will need to be converted into a benefit payable to the ex-partner. The calculations below are based on the following benefit features:

• a pension payable from age 60 (1995 section), 65 (2008 section), or the transfer day, if later;
• for the 1995 section, if the member has not received a lump sum before the pension sharing order date, a lump sum of three times the ex-partner's pension. This is payable at age 60, or the transfer date if the ex-partner is aged 60 or above. If the ex-partner dies before retirement, the deferred lump sum will be payable on the death of the ex-partner. No lump sum is payable to the ex-partner if the member has already received their lump sum from the scheme;
• for the ex-partner of Choice Optants, if the member has not received their Mandatory Lump Sum in respect of pre-1 April 2008 service in the 1995 section before the pension sharing order date, a lump sum of 2¼ times the ex-partner's pension in respect of service accrued by the member in the 1995 section. This is payable at age 65 (unreduced from age 60), or the transfer day if the ex-partner is aged 65 or above. If the ex-partner dies before retirement, the deferred lump sum will be payable on the death of the ex-partner. No lump sum is payable to the ex-partner if the member has received their Mandatory Lump Sum from the scheme;
• benefits to be increased in line with prices, under the provisions of the Pensions (Increase) Acts;
• no attaching benefits for the children or future partner of the ex-partner on the death of the ex-partner;
• on death after retirement, a lump sum equal to five times the pension less the pension already received, subject to a maximum of twice the member's salary at the transfer date less any lump sum paid to the ex-partner.

Table DIV3 set out the factors needed to calculate the pension credit for the ex-partner where the ex-partner had already attained their pension age as set out in the paragraph above. Where the ex-partner had not attained that age at the transfer date a deferred pension credit is established payable from NPA and the factors should be taken in line with that set out in the NHSPSS CETV guidance.

The calculation date should be determined in line with the approach set out in Cash equivalents on divorce: general considerations. The factors should be selected with reference to the age last birthday of the ex-partner on the calculation date. Do not use the age of the member.

The ex-partner's pension credit will be subject to pension increases with effect from the transfer day, under the provision of the Pensions (Increase) Act 1971.

For ex-partners of members in the 1995 section who are under Normal Pension Age as set out in the Calculation of the pension credit for the ex-partner section above, the pension credits are calculated as follows:

If the member has not received their lump sum prior to the calculation date, the pension credit as at the calculation date will be:

• [Ex-partner's Cash Equivalent] / [Factor TV1/2A + (3 x Factor TV1/2B)]

The retirement lump sum credit as at the calculation date will be:

• 3 x pension credit

If the member has received their lump sum prior to the calculation date, the ex-partner is not entitled to a lump sum and the pension credit as at the calculation date will be:

• [Ex-partner's Cash Equivalent] / Factor TV1/2A

For ex-partners of members in the 2008 section who are under Normal Pension Age as set out in the Calculation of the pension credit for the ex-partner section above

The pension credits are calculated as follows:

• [Ex-partner's Cash Equivalent] / Factor TV3/4A

For ex-partners of Choice Optants in the 2008 section who are under Normal Pension Age as set out in the Calculation of the pension credit for the ex-partner section above

The ex-partner's cash equivalent (CE) will first of all need to be split between that in respect of the member's service before 1 April 2008 and that in respect of their service from 1 April 2008. This apportionment is done in the same ratio as the member's cash equivalent.

If the member has not received their mandatory lump sum prior to the calculation date, the pension credits for the ex-partner are then calculated as follows:

In respect of pre-1 April 2008 service:

• [Pre 2008 service ex-partner's CE] / [(Factor TV3/4A x 0.8125) + (2.25 x Factor TV3/4B)]

In respect of post-1 April 2008 service:

• [Post 2008 service ex-partner's CE] / Factor TV3/4A

The mandatory lump sum credit as at the calculation date will be:

• 2.25 x pension credit in respect of pre-1 April 2008 service

On payment the pension credit will be reduced by the mandatory lump sum credit divided by 12.

If the member has received their mandatory lump sum prior to the calculation date, the pension credits are calculated as follows:

In respect of pre-1 April 2008 service:

• [Pre 2008 service ex-partner's CE] / [Factor TV3/4A x 0.8125]

In respect of post-1 April 2008 service:

• [Post 2008 service ex-partner's CE] / Factor TV3/4A

There will be no mandatory lump sum credit.

For ex-partners of members in the 1995 section who are over Normal Pension Age as set out in the Calculation of the pension credit for the ex-partner section above

The pension credits are calculated as follows:

If the member has not received their lump sum prior to the calculation date, the pension credit as at the calculation date will be:

• [Ex-partner's Cash Equivalent] / [Factor DIV3A + (3 x Factor DIV3B)]

If the member has received their lump sum prior to the calculation date, the ex-partner is not entitled to a lump sum and the pension credit as at the calculation date will be:

• [Ex-partner's Cash Equivalent] / Factor DIV3A

For ex-partners of members in the 2008 section who are over Normal Pension Age as set out in the Calculation of the pension credit for the ex-partner section above

The pension credits are calculated as follows:

• [Ex-partner's Cash Equivalent] / Factor DIV3C

For ex-partners of Choice Optants in the 2008 section who are over Normal Pension Age as set out in the Calculation of the pension credit for the ex-partner section above

The ex-partner's cash equivalent (CE) will first of all need to be split between that in respect of the member's service before 1 April 2008 and that in respect of their service from 1 April 2008. This apportionment is done in the same ratio as the member's cash equivalent.

If the member has not received their mandatory lump sum prior to the calculation date, the pension credits for the ex-partner are then calculated as follows:

In respect of pre-1 April 2008 service:

• [Pre 2008 service ex-partner's CE] / [(Factor DIV3C x 0.8125) + (2.25 x Factor DIV3B)]

In respect of post-1 April 2008 service:

• [Post 2008 service ex-partner's CE] / Factor DIV3C

The mandatory lump sum credit as at the calculation date will be:

• 2.25 x pension credit in respect of pre-1 April 2008 service

On payment the pension credit will be reduced by the mandatory lump sum credit divided by 12.

If the member has received their mandatory lump sum prior to the calculation date, the pension credits are calculated as follows:

In respect of pre-1 April 2008 service:

• [Pre 2008 service ex-partner's CE] / [Factor DIV3C x 0.8125]

In respect of post-1 April 2008 service:

• [Post 2008 service ex-partner's CE] / Factor DIV3C

There will be no mandatory lump sum credit.