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 the ex-partner's Prospective Normal Pension Age (PNPA) or the transfer day, if later. (The PNPA is as defined in the NHSPSS 2015 Regulations (State Pension age in accordance with HM Teasury Directions).)
• no attaching benefits for the children, future partner or future civil partner of the ex-partner on the death of the ex-partner
• on death after retirement, a lump sum equal to five times the annual rate of pension less the pension already received, subject to a maximum of twice the member's re-valued salary at the transfer date less any lump sum payments already received

Table DIV3 sets out the factors needed to calculate the pension credit for the ex-partner where the ex-partner has already attained their Normal Pension Age.

Where the ex-partner has not attained that age at the transfer date the factors should be taken from the NHSPSS 2015 CETV guidance. The applicable factor tables are as below:

The calculation date should be determined in line with the approach set out in Cash equivalents on divorce: general considerations. Table DIV3 should be based on the age last birthday of the ex-partner on this date. Table TV1A is based on period in complete years (rounded up) between the date of calculation and the ex-partner's PNPA. Do not use the age/PNPA of the member.

For ex-partners' who are under PNPA, pension credits are calculated as follows:

Pension credit = [Ex-partner's Cash Equivalent] / Factor TV1A

For ex-partners' who are over Normal Pension Age, pension credits are calculated as follows:

Pension credit = [Ex-partner's Cash Equivalent] / Factor DIV3

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