In any divorce proceedings dealing with the division of matrimonial assets, the parties are required to disclose to each other and to the Court, all their financial interests. This will include details relating to pension benefits that are shareable regardless of whether a pension sharing order will eventually be made.
The calculations set out in this guidance determine the value of pension rights for a member with benefits of the 1988 Scheme, as required for the divorce proceedings. The methods described should be used both when a member applies for a quotation of the value of the benefits during the divorce proceedings, and after a pension sharing order has been made.
The calculations required and the factor tables used depend on the status of the member at the calculation date, including their age, normal pension age and the date on which they will reach (or did reach) State Pension age.
The methodology for former members who are receiving pension benefits at the time of the divorce is set out in the "Cash equivalents on divorce: Members already in receipt of benefits" section. The "Cash equivalents on divorce: Active members and deferred pensioners" section covers the provisions for serving police officers and deferred pensioners.
If the other party in the divorce proceedings also has 1988 Scheme benefits, or either party has 2006 or 2015 Scheme benefits, then separate valuations are required in respect of those pension rights.
For divorce cases in Scotland, the cash equivalent calculated in accordance with this guidance is then adjusted in accordance with the Divorce etc (Pensions) (Scotland) Regulations 2000, subject to any relevant case law.
Calculation Date
The calculation date will depend on the stage of the divorce:
- If a quotation is required for part of the proceedings, in Scottish cases, the calculation date will usually be specified by the court. For divorces in England, Wales and Northern Ireland, the calculation date used should be consistent with the date used for normal transfer value calculations (i.e. the guarantee date).
- If the calculation is being done after a pension sharing order has been made, the calculation date should be day on which the relevant order or provision takes effect. This is often referred to as the "transfer day", as defined in section 29 of the Welfare Reform and Pensions Act 1999 (the 1999 Act).
Selection of factors
Factors should be selected with reference to the member's status and age last birthday at the calculation date, which should be determined in line with the section above.
For calculations being completed after a pension sharing order has been made, there may be some time between the calculation date (which should be the day on which the relevant order or provision takes effect) and the date on which administrators process the calculation (sometimes referred to as the "valuation day", as defined in the 1999 Act). In some cases, it's possible that different sets of factors will be in force on the two dates. In these circumstances, the set of factors that are in force on the day administrators process the calculation should be used. Individual factors should be selected from this factor set with reference to the member's or ex-partner's status and age last birthday at the calculation date, in the normal way.
Benefits to be valued
Full details of the benefits to be included in the calculation of cash equivalents for divorce purposes are set out from "Pension benefits" to the end of "Guaranteed Minimum Pension" in the Cash equivalents on divorce: Members already in receipt of benefits section, for members in receipt of scheme benefits, and the Transfer values on transfers out of the 1988 scheme section for active and deferred members.
It is important that the amount of all relevant benefits used in the calculation should be the amount taken immediately before the calculation date, consistent with the 1999 Act.
GMP equalisation: impact on calculations
In previous versions of this guidance prior to August 2019, a GMP adjustment was applied to all cash equivalent calculations. This adjustment was to reflect the inflationary increases on a member's Guaranteed Minimum Pension (GMP), which have historically been the responsibility of the State after GMP Payment Age.
However, following the requirement to equalise GMPs, from August 2019 GMP adjustment factors should no longer be applied in calculations for members who reach State Pension age (SPA) on or after 6 April 2016.
The cohorts of members who reach SPA on or after 6 April 2016 are:
- Males with a date of birth on or after 6 April 1951 and an accrued GMP
- Females with a date of birth on or after 6 April 1953 and an accrued GMP
For members with an accrued GMP in the cohorts listed above, calculations of cash equivalents of members benefits should be undertaken using the methodology set out in this guidance note but with any GMP (pre or post 1988) set to zero. (Debits to a member's GMP following a divorce still need to be determined however.)
For the majority of calculations for these cohorts of members, not applying the GMP adjustment factors will slightly increase the total transfer value.
For members who reached SPA before 6 April 2016, GMP adjustment factors should be applied.
Members already in receipt of benefits do not have an entitlement to a cash equivalent transfer value. The pensioner cash equivalent value can be calculated using the method and factors in this note, but should be used for divorce purposes only.
There are two sets of tables:
- Table G : Pensioners who retired on ordinary grounds
- Table H : Pensioners who retired on medical grounds.
The main difference between Table G and Table H is that Table H allows for the heavier mortality experienced on average by those who retire due to ill health.
For ill-health pensioners under the age of 55, Table H should only be used where full pension increases are payable in the period up to age 55. If pension increases are not payable before age 55 then the case should be referred to the DoJ.
Calculation
The pensioner cash equivalent should be calculated as follows:
Cash Equivalent = (CP x FP) + (SUR x FS) - ([PRE GMP + (Gpost88 x POST GMP)] x FGMP) + Adj B
Where:
CP = current member's pension, see Pension Benefits section
SUR = pension payable on the death of the member to their spouse in respect of a post-retirement marriage, see Pension Benefits section
PRE GMP = annual GMP accrued before 6 April 1988, including revaluation (for those who reached SPA before 6 April 2016; see the "Guaranteed Minimum Pension" section) or zero (for those who reached SPA on or after 6 April 2016)
POST GMP = annual GMP accrued from 6 April 1988, including revaluation (for those who reached SPA before 6 April 2016; see the "Guaranteed Minimum Pension" section) or zero (for those who reached SPA on or after 6 April 2016)
Adj B = Adjustment B, see paragraph on "Adjustment B" below
FP = factor for member's pension -Table G1, G2, H1 or H2
FS = factor for survivor's pension - Table G1, G2, H1 or H2
FGMP = factor for GMP saving -Table G1, G2, H1 or H2
Gpost88 = conversion factor applied to GMP deduction, for GMP amount in respect of service of service from 6 April 1988. When calculating the deduction for GMP, the factor given should be applied to the sum of the GMP amount in respect of service up to 5 April 1988 and 15% of the GMP amount in respect of service afte that date.
Pension benefits
The member's pension (CP) should be the rate of pension in payment at the calculation date. The survivor's pension (SUR) should be the rate at which a post-retirement widow(er)'s pension would be payable if the member had died immediately before the calculation date. Subject to the paragraph directly below, the last pension increase should be that awarded up to and including the April increase immediately prior to the calculation date.
Most pensioner members who are under age 55 do not receive pension increases until age 55 (the exception being the majority of members whose pension commences on ill health grounds). In these cases, the amount for CP used in the Calculation paragraph should exclude pension increases for the period between leaving active service and the April immediately before the calculation date inclusive. Allowance is made for these increases in Adjustment B. However, pension increases should be included in the calculation of SUR.
For the avoidance of doubt, the pension used should be the pension in payment, after reduction for commutation or forfeiture, and after any reduction arising from options in respect of pre-1972 widows' benefits. It has been decided to ignore NI Modification in the 1988 scheme, on grounds of simplicity, because the amounts involved are small.
If the member's pension is reduced because an allocation option was taken out, then the pension before this reduction should be used (including subsequent pension increases). The value of the benefits calculated in this way will be similar to the value of the benefits after exercising the option. The allocated benefit is shareable in the same way as a dependant's benefit.
If the member's pension is reduced due to abatement or suspension due to re-employment, then the abatement reduction should be ignored for the purpose of this calculation. Benefits should be calculated as though the member had ceased re-employment and valued accordingly.
If the member retired on ill health grounds and the pension has been reduced because it had been demonstrated that the pensioner had brought about the disability by his own default, please refer the case to the DoJ. If pension increases are payable before age 55 for any reason other than ill health, please also refer the case to the DoJ.
Guaranteed Minimum Pension
For members who reached State Pension age before 6 April 2016, the cash equivalent must be adjusted to reflect increases on the Guaranteed Minimum Pension (GMP) that are the responsibility of the State. Separate pre and post 1988 GMP figures need to be used.
Where the GMP is not yet in payment, the GMP amounts used in the calculation should include revaluation using Section 148 orders. Where the GMP is in payment, the GMP amounts used in the calculation should be the actual GMP amounts in payment at the calculation date. Annual GMP figures can be obtained by multiplying the weekly GMP figures by 52.
Adjustment B
This only applies to pensioners aged under 55 where the pension increases are deferred until age 55 (that is, pensioners under age 55 except those who have retired due to ill health and who were granted full pension increases before age 55). At age 55, the pension will increase up to the level it would have been if it had been index-linked since retirement.
Adjustment B is calculated as follows:
Adj B = PI x FP-A
Where:
PI = pension increases accrued but not yet payable (NB. the monetary amount and not the percentage increase)
FP-A = factor from Table M
Where the benefits have not yet come into payment, the cash equivalent value quoted should be the same as the statutory CETV (i.e. non-Club transfer value) that would be payable. This should generally be calculated using the same approach as would apply to a normal non-Club transfer value, even if the member is not normally entitled to a transfer value.
The benefits to be valued for serving police officers are those that would be payable if the member had left service - either deferred benefits or the payment of immediate benefits. Those with less than 3 months of service would normally be entitled only to a refund of contributions. However, deferred benefits should be valued for divorce purposes.
The calculation date should be selected in line with the Cash equivalents on divorce: General considerations section of this guidance.
The cash equivalent value should be calculated in accordance with the Transfer values on transfers out of the 1988 scheme section of this guidance. If the member has previously received a transfer in of benefits from another scheme then the underpin as set out in Underpin in respect of previous transfer in in the Transfer values on transfers out of the 1988 scheme section should apply to the cash equivalent value. Similarly, the member contribution underpin set out in Member contribution underpin to CETV in the Transfer values on transfers out of the 1988 scheme section also applies to the cash equivalent value. (That is, the underpins in the Underpin in respect of previous transfer in and Member contribution underpin to CETV subsections apply to both CETV calculations and to calculations where a cash equivalent value is required for pension sharing on divorce purposes).
Members with one or more existing pension debits
Where a member has one or more pension debits (either in respect of a previous divorce or one or more annual allowance tax charges), the cash equivalent should be calculated in line with Pension debit members in the Transfer values on transfers out of the 1988 scheme section.
When a pension sharing order is received from the Court, the first stage is to check that all the necessary information has been provided and any charges requested at this stage have been paid. The value of the member's benefits should be recalculated, as described in the paragraphs above. In the case of an active member, the benefits should be those to which the member would be entitled if pensionable service had terminated immediately before the transfer day (the transfer day is the day when the order takes effect). The cash equivalent should be based on the age of the member at the calculation date, which will be the transfer day.
For divorces under English law and Northern Irish law, the pension sharing order will specify the percentage of the member's benefits that the ex-spouse or ex-civil partner will be entitled to. The member's cash equivalent obtained below should be multiplied by this percentage, to give the value of the ex-spouse or ex-civil partner's benefits, or the ex-spouse or ex-civil partner's cash equivalent (ESCE):
ESCE = (CE x Appropriate Percentage / 100) - Charges
Where:
CE = cash equivalent of the member's benefits
Charges = are any charges to cover the cost of the work generated by the pension sharing order, which the police authority has decided should be deducted from the value of benefits awarded to the ex-spouse or ex-civil partner
Under Scottish law, the pension sharing order will usually specify a monetary amount (MA). The percentage for the pension debit should be calculated as the ratio of the monetary amount and the cash equivalent:
Appropriate Percentage = (MA / CE) x 100
When the appropriate percentage is used to calculate the ex-spouse or ex-civil partner's cash equivalent as in the paragraphs above the ESCE will be equal to the monetary amount specified in the order, less charges.
The ESCE and appropriate percentage calculated as above should be used to derive both the pension credit and pension debit, as described in the paragraphs below.
This section sets out the method for calculating the pension credit payable to the ex-partner following the issue of a pension sharing order by the Court.
The calculation factors should be selected using the age of the ex-partner at the "transfer day". Do not use the age of the member.
Calculation
The pension credit will be as follows:
Pension Credit = (ESCE / FP)
Where:
ESCE = the ex-partner's cash equivalent - see the Calculation of the value of the shareable rights section
Fp = factor for ex-partner pension - Table K: Factors for calculating the pension credit
Pension credit benefits
The pension credit will be paid when the ex-spouse or ex-civil partner reaches age 60, or immediately if the ex-spouse or ex-civil partner is over age 60.
The ex-spouse or ex-civil partner's pension credit will be subject to pension increases under the provisions of the Pensions (Increase) Act 1971.
The ex-spouse or ex-civil partner will be entitled to take a lump sum by commutation of pension, in much the same way as a deferred pensioner, provided that the member has not already done so before the date when the pension sharing order took effect. However, note that lump sums payable to pension credit members are limited to 2.25 times their pension under the Regulations. (Deferred pensioners can commute up to 25% of their pension.)
This section sets out the method and instructions for calculating the pension debit to be applied to the member's benefits following the issue of a pension sharing order by the Court:
- Where the member is a pensioner, the debit will apply to the member's own pension with immediate effect and also to the pension payable to a future surviving spouse or civil partner on the member's death.
- Where the member is a deferred pensioner (i.e. no longer contributing to the scheme), the debit will apply to the member's pension at the point when the pension becomes payable. The member may take a lump sum, but the commutation must be based on the pension after the debit has been applied. The debit will also apply to the pension payable to a future surviving spouse or civil partner on the member's death.
- Where the member is an active member (i.e. still contributing to the scheme), the debit will be calculated assuming retirement at the member's deferred pension age as if pensionable service terminated immediately before the transfer day (or assuming the pension commences immediately if the member is entitled to immediate benefits). The debit will also apply to the pension payable to a future surviving spouse or civil partner on the member's death.
For non-pensioner members, the debit will usually need to be adjusted on retirement. The adjustments depend on some or all of:
- the deferred pension age (or whether the member was entitled to immediate benefits) when the debit was established
- the age at retirement
- accrued pension increases at the time the debit was established and/or at retirement
- health status at retirement
- whether the member qualifies for pension increases at retirement
If there is doubt about the correct approach for a particular case, administrators should refer their questions to DoJ.
For divorces in England and Wales and Northern Ireland, the pension sharing order will specify the percentage of the member's benefits that the ex-spouse or ex-civil partner will be entitled to. For divorces in Scotland, the value of the cash equivalent to be shared will be specified, and the proportion will be calculated as described in the Calculation of the value of the shareable rights section.
The debit applying to the member's pension will be:
MEMDEB = CP x Appropriate Percentage / 100
The debit applying to any future surviving spouse or civil partner's pension will be:
SURDEB = SUR x Appropriate Percentage / 100
The debit applying to the GMP will be:
PREGMPDEB = PRE GMP x Appropriate Percentage / 100
POSTGMPDEB = POST GMP x Appropriate Percentage / 100
CP, SUR, PRE GMP and POST GMP are defined in the Cash equivalents on divorce: Members already in receipt of benefits section. The amounts should be the same as used to recalculate the cash equivalent of the member's benefits in the Calculation of the value of the shareable rights section.
The principle is the same as for the pensioner, except that the debit will not start to be deducted until the member's benefits come into payment. In addition, the maximum amount of pension that the member can commute at retirement should be based on the pension after the debit has been applied (so the lump sum will also be lower than if no pension debit was in place).
Debits are calculated by reference to the pension at exit (i.e. excluding any increases applying after the member left service).
MEMDEB = Member's pension at exit x Appropriate Percentage / 100
SURDEB = Survivor's pension at exit x Appropriate Percentage / 100
PREGMPDEB = PRE GMP at exit x Appropriate Percentage / 100
POSTGMPDEB = POST GMP at exit x Appropriate Percentage / 100
Adjusting the debit at retirement
At retirement, the adjustment to the debit depends on the member's deferred pension age at the transfer day. The Retirement at deferred pension age section describes the adjustment to be made when the member retires at the age assumed when the debit was established. The Retirement at a time other than the deferred pension age section describes the adjustment to be made when the member retires at any other age.
Members with a deferred pension age of 60
Where the retirement occurs at age 60, the debit need only be adjusted for pension increases. The pension debit at retirement will be:
Pension debit = MEMDEB x PI
Where:
MEMDEB = pension debit to the member's pension at exit - see the formula above
PI = the pension increase uprating factor between the date of exit and the date of retirement
Members with a deferred pension age of 50
Where the retirement occurs at age 50, no adjustment is required to the debit. The debit as calculated in the Pension debit for deferred pensioner subsection should be implemented without adjustment. (The original debit calculated at the time of the pension sharing order may have been re-expressed as an equivalent debit applying from age 60 but this should be ignored.)
Members entitled to immediate benefits
Where the retirement occurs immediately, no adjustment is required to the debit. The debit as calculated in the Pension debit for deferred pensioner should be implemented without adjustment.
The member's pension should be adjusted to allow for the different period over which the debit will be deducted. The pension debit will be:
Pension debit = MEMDEB x PI x RTF
Where:
MEMDEB = pension debit to the member's pension at exit - see the formula above
PI = the pension increase uprating factor between the date of exit and the date of retirement
RTF = retirement timing factor - see the below paragraphs
Members with a deferred pension age of 60
Where the retirement occurs after age 55, or before age 55 on ill health grounds with pension increases payable immediately, the retirement timing factor will be:
RTF = ERFret
Where:
ERFret = early retirement factor at retirement age - Table N or P, as appropriate
Where the retirement occurs before age 55, in normal health or on ill health grounds, with pension increases not payable until age 55, the retirement timing factor will be:
RTF = FTret / [FQret + (PI x FSret)]
Where:
FTret = factor for age at retirement date from Table T1 or T2
FQret = factor for age at retirement date from Table Q1 or Q2
FSret = factor for age at retirement date from Table S1 or S2
PI = the pension increase uprating factor between the date of exit and the date of retirement
Members with a deferred pension age of 50
Where the retirement occurs after age 55, or before age 55 on ill health grounds with pension increases payable immediately, the retirement timing factor will be:
RTF = [(FQ50 x FR50 / FRret) + (PI x FSret)] / (PI x FUret)
Where:
FQ50 = factor for age 50 from Table Q1 or Q2
FR50 = factor for age 50 from Table R
FRret = factor for age at retirement date from Table R
FSret = factor for age at retirement date from Table S1 or S2
FUret = factor for age at retirement date from Table U1 or U2
PI = the pension increase uprating factor between the date of exit and the date of retirement
Where the retirement occurs before age 55, in normal health or on ill health grounds, with pension increases not payable until age 55, the retirement timing factor will be:
RTF = [(FQ50 x FR50 / FRret) + (PI x FSret)] / [PI x (FQret + (PI x FSret))]
Where:
FQ50 = factor for age 50 from Table Q1 or Q2
FR50 = factor for age 50 from Table R
FRret = factor for age at retirement date from Table R
FSret = factor for age at retirement date from Table S1 or S2
FQrett = factor for age at retirement date from Table Q1 or Q2
PI = the pension increase uprating factor between the date of exit and the date of retirement
Members entitled to immediate benefits
Where the retirement occurs after age 55, or before age 55 on ill health grounds with pension increases payable immediately, the retirement timing factor will be:
RTF = [(FQtrd x FRtrd / FRret) + (PI x FSret)] / [PI x FUret))]
Where:
FQtrd = factor for age at transfer day from Table Q1 or Q2
FRtrd = factor for age at transfer day from Table R
FRret = factor for age at retirement date from Table R
FSret = factor for age at retirement date from Table S1 or S2
FUret = factor for age at retirement date from Table U1 or U2
PI = the pension increase uprating factor between the date of exit and the date of retirement
Where the retirement occurs before age 55, in normal health or on ill health grounds, with pension increases not payable until age 55, the retirement timing factor will be:
RTF = [(FQtrd x FRtrd / FRret) + (PI x FSret)] / [PI x (FQret + (PI x FSret))]
Where:
FQtrd = factor for age at transfer day from Table Q1 or Q2
FRtrd = factor for age at transfer day from Table R
FRret = factor for age at retirement date from Table R
FSret = factor for age at retirement date from Table S1 or S2
FQret = factor for age at retirement date from Table Q1 or Q2
PI = the pension increase uprating factor between the date of exit and the date of retirement
The principle is that the debit acts as a negative deferred pension that will be set against the member's pension when it comes into payment. In addition, the maximum amount of pension that the member can commute at retirement should be based on the pension after the debit has been applied (so the lump sum will also be lower than if no pension debit was in place).
Debits are calculated by reference to the benefits used to recalculate the cash equivalent as at transfer day.
MEMDEB = Member's pension used in cash equivalent calculation x Appropriate Percentage / 100
SURDEB = Survivor's pension used in cash equivalent calculation x Appropriate Percentage / 100
PREGMPDEB = PRE GMP used in cash equivalent calculation x Appropriate Percentage / 100
POSTGMPDEB = POST GMP used in cash equivalent calculation x Appropriate Percentage / 100
The pension debit to be implemented at retirement will be:
Pension debit = MEMDEB x PItrd_ret x RTF
Where:
MEMDEB = pension debit to the member's pension at transfer day - see above
PItrd_ret = the pension increase uprating factor between the transfer day and the date of retirement
RTF = retirement timing factor - see Retirement from active service section below
The retirement timing factor depends on the member's age at retirement and the assumed retirement age used in the calculation of the cash equivalent. For members entitled to immediate benefits at the transfer day, the assumed retirement age is the age at the transfer day. For other members, the assumed retirement age is the deferred pension age as if pensionable service terminated immediately before the transfer day.
The retirement timing factor depends on whether the member retired directly from active service or following a period of deferment. The below describes the adjustment to be made when the member retires from active service. The Retirement from deferred section describes the adjustment to be made when the member retires following a period of deferment.
Members with an assumed retirement age of 60
Where the member retires on their 60th birthday
RTF = 1
For retirement at any other age
RTF = ERFret
Where:
ERFret = early retirement factor at retirement age - Table N or P
Members with an assumed retirement age of 50
Where the retirement occurs after age 55, or before age 55 on ill health grounds with pension increases payable immediately, the retirement timing factor will be:
RTF = [(FQ50 x FR50 / FRret) + (PItrd_ret x FSret)] / [PItrd_ret x FUret]
Where:
FQ50 = factor for age 50 from Table Q1 or Q2
FR50 = factor for age 50 from Table R
FRret = factor for age at retirement date from Table R
FSret = factor for age at retirement date from Table S1 or S2
FUret = factor for age at retirement date from Table U1 or U2
PItrd_ret = the pension increase uprating factor between transfer (divorce) date and the date of retirement
Where the retirement occurs before age 55 in normal health with pension increases not payable until age 55, the retirement timing factor will be:
RTF = [(FQ50 x FR50 / FRret) + (PItrd_ret x FSret)] / [PItrd_ret x (FQret + FSret)]
Where:
FQ50 = factor for age 50 from Table Q1
FQret = factor for age at retirement date from Table Q1
FR50 = factor for age 50 from Table R
FRret = factor for age at retirement date from Table R
FSret = factor for age at retirement date from Table S1
PItrd_ret = the pension increase uprating factor between transfer (divorce) date and the date of retirement
Members entitled to immediate benefits at the transfer day
The retirement factor will be:
RTF = ERFret / ERFtrd
Where:
ERFret = early retirement factor at retirement age - Table N or P
ERFtrd = early retirement factor at member's age at the transfer day - Table N or P
For members entitled to an immediate pension or a deferred pension from age 50, the debit used in the Adjusting the debit at retirement paragraph must be the original debit, as calculated in the Pension debit for an active member paragraph. (The original debit calculated at the time of the pension sharing order may have been re-expressed as an equivalent debit applying from age 60 but this should be ignored.)
If the member has retired on ill health grounds and pension increases are not payable before age 55, then the relevant formula from the retirement from deferred section below (Retirement from deferred) should be used, with PIdol_ret set to 1.
Retirement from deferred
Where the retirement occurs after age 55, or before age 55 on ill health grounds, with pension increases payable immediately, the retirement timing factor should be calculated as for retirement from active service, as described in the Retirement from active service section. For other cases, the retirement timing factor is determined according to paragraphs below.
Members with assumed retirement age of 60 retiring before age 55, in normal health or on ill health grounds, with pension increases not payable until age 55
The retirement factor will be:
RTF = FTret / [FQret + (PIdol_ret x FSret)]
Where:
FTret = factor for age at retirement date from Table T1 or T2
FSret = factor for age at retirement date from Table S1 or S2
FQret = factor for age at retirement date from Table Q1 or Q2
PIdol_ret = the pension increase uprating factor between date of exit and the date of retirement
Members with assumed retirement age of 50 retiring before age 55, in normal health or on ill health grounds, with pension increases not payable until age 55
The retirement factor will be:
RTF = [(FQ50 x FR50 / FRret) + (PItrd_ret x FSret)] / [PItrd_ret x (FQret + (PIdol_ret x FSret))]
Where:
FQ50 = factor for age 50 from Table Q1 or Q2
FR50 = factor for age 50 from Table R
FRret = factor for age at retirement date from Table R
FSret = factor for age at retirement date from Table S1 or S2
FQret = factor for age at retirement date from Table Q1 or Q2
PIdol_ret = the pension increase uprating factor between the date of exit and the date of retirement
PItrd_ret = the pension increase uprating factor between transfer (divorce) date and the date of retirement
Members entitled to immediate benefits at the transfer day retiring before age 55, in normal health or on ill health grounds, with pension increases not payable until age 55
The retirement timing factor will be:
RTF = [(FQtrd x FRtrd / FRret) + (PItrd_ret x FSret)] / [PItrd_ret x (FQret + (PIdol_ret x FSret))]
Where:
FQtrd = factor for age at transfer day from Table Q1 or Q2
FRtrd = factor for age at transfer day from Table R
FRret = factor for age at retirement date from Table R
FSret = factor for age at retirement date from Table S1 or S2
FQret = factor for age at retirement date from Table Q1 or Q2
PIdol_ret = the pension increase uprating factor between the date of exit and the date of retirement
PItrd_ret = the pension increase uprating factor between transfer (divorce) date and the date of retirement
The benefits payable to a new spouse, civil partner or other qualifying partner on the member's death should be reduced by the survivor's pension debit, revalued using the pension increase uprating factors. No spouse or civil partner or other qualifying partner's benefits will be payable to the person who was party to the divorce resulting in the pension sharing order (except in the unlikely situation that the member remarried or entered into a new qualifying partnership with his or her ex-partner).
On the death of a member subject to a pension debit, it is possible that the pension payable to a future surviving spouse, civil partner or other qualifying partner (before deducting the survivor's debit) will be based on a shorter period of service (up to the transfer day) than the survivor's pension (SUR) used in the recalculation of the cash equivalent. In these cases, the original debit to the survivor's pension calculated at the time of the pension sharing order (see Pension debit for current pensioner, Pension debit for deferred pensioner and Pension debit for an active member subsections) will not be appropriate, and such cases should be referred to DoJ.
At the member's GMP Payment Age (or later retirement date) the GMP debit, calculated in the appropriate section above, should be increased to the member's GMP Payment Age (or later retirement date). All increases should be allowed for, including the late retirement increase of 1/7 of a percent (i.e. 1/700) a week if appropriate. The revalued debit should be deducted from the member's full GMP.
No debit will be applied to a child's pension.
No debit will be made to the lump sum death grant payable to police officers who were contributing to the scheme at their death.
For the purpose of determining aggregate pension contributions under the Regulations for the purposes of repayment, and for the purpose of determining death gratuities payable, the member's aggregate pension contributions paid before the effective date of the pension share should be reduced by a debit equal to the percentage ordered by the Court, or as calculated in the Calculation of the value of the shareable rights paragraph.
