In Scotland, the pensions sharing order will usually specify a monetary amount. The percentage for the pension debit should be calculated as the ratio of the monetary amount and the cash equivalent. This percentage should be applied to all the benefits (including GMP) used to determine the cash equivalent transfer value.

These amounts are the member's debits (reductions in member and dependant pensions and retirement lump sum for 1995 section members) and are subject to pension increases with effect from the valuation date, under the provision of the Pensions (Increase) Act 1971.

For divorces under English law, the pension sharing order will specify the percentage of the member's benefits that is to be shared. This percentage should be applied to the member's benefits as in the first paragraph of this section to determine the member's debits.

On early retirement (except in ill-health), pension debits should be reduced to reflect that the debit will be in effect for a longer period. Pension debits should be treated as main scheme pension for the purposes of determining which reduction factors should be applied. Therefore, factors ERF1, ERF2 or (1/ [Factor ERF3A / PI + ERF3B]) should be applied as applicable to the pension debit. The factors ERF7 or (1/ [Factor ERF9A / PI + Factor ERF9B) should be applied to the lump sum debit if appropriate.

For NPA 55 members retiring between age 55 and 60 from active service who had a pension sharing order implemented before age 55, the pension debit will need to be reduced even though the member is not technically retiring early. Other scheme benefits are not affected and do not need to be adjusted. Factor ERF1 should be applied to the pension debit and Factor ERF7 to the lump sum debit.

See the voluntary early and late retirements in normal health guidance for more information.

For late retirements of members from the 1995 section no adjustment should be made to the pension debit to reflect later debit.

For late retirements of members of the 2008 section where the member divorced before age 65, the pension debit should be treated as main scheme pension for the purposes of determining the late retirement factor to be applied. That is, the pension debit should be increased by applying factor LRF3.

For late retirements of members of the 2008 section, if the member divorced after age 65, the pension debit should also be increased to allow for the debit coming into effect later than NPA. However, in the same way that after age 65 not all pension attracts a late retirement uplift, only part of the debit should be increased.

The pension debit should first be proportioned by the amount of main scheme pension which attracts a late retirement uplift:

• Pension debit to attract an uplift = Pension debit x Main scheme pension which attracts an uplift / Total main scheme pension

The late retirement uplift to be applied needs to reflect the date at which the debit was calculated:

• Pension debit uplift = Factor LRF3 for age at retirement / Factor LRF3 for age at date of divorce

Therefore, the overall pension debit on late retirement for 2008 section late retirees who divorced after age 65 is:

• (Pension debit x (Scheme pension which attracts an uplift / Total main scheme pension) x (LRF3 age at retirement / LRF3 for age at divorce))
  + (Pension debit x (Scheme pension which does not attract an uplift / Total main scheme pension))

See the voluntary early and late retirements in normal health guidance for more information.

No adjustments should be applied to pension debits on retirement on grounds of ill health or to dependants' debits whatever the circumstances of death.

On subsequent transfer out the debits should be applied to members' benefits before the cash equivalent is determined.