For divorces 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 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 paragraph above to determine the member's debits.

On early retirement (except in ill health), pension debits resulting from the earnings debit 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 the relevant factor from Table ERF1 should be applied to the pension debit.

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

For late retirements where the member divorced before their NPA, the pension debit should be treated as additional pension for the purposes of determining the late retirement factor to be applied. That is, the pension debit should be increased by applying the relevant factor from Table LRF2.

For late retirements where the member divorced after their NPA, the pension debit should also be increased to allow for the debit coming into effect later than NPA by applying factors from Table LRF2 as below.

• Pension debit uplift = Factor LRF2 for number of years between NPA and retirement / Factor LRF2 for number of years between divorce and NPA

The pension debit to be applied at retirement should then be calculated as:

• Pension debit at retirement = Pension debit at date of divorce x Pension debit uplift

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 the valuation of the member's benefits before the cash equivalent is determined.