The age used in the calculation should be determined as at the relevant date.
Factors for the survivor's pension do not depend on whether or not the member has a qualifying partner, hence, there is only one set of factors.
The pension credit to be awarded is calculated using the following formula.
Pension credit = TV / C
Where:
TV is the transfer value
C is the cost of £1 of pension credit, as calculated in the paragraph directly below
The cost of £1 of pension credit, C, is calculated using the following formula.
C = Fp + (0.5 x Fsur)
Where:
Fp is the factor for member's pension in table TVIN_15M or table TVIN_15F
Fsur is the factor for survivor's pension in table TVIN_15M or table TVIN_15F
If the transfer value received includes benefits in respect of service after 6 April 1997 in a contracted out pension scheme, the 2015 scheme pension credit in respect of benefits identified by the former scheme as post-97 contracted-out rights must be recorded as Section 9(2B) rights. The pension credit that counts as Section 9(2B) rights is determined as follows:
Section 9(2B) rights pension credit = TVpost97 / C
Where:
TVpost97 is the portion of the transfer value identified as post-1997 contracted-out rights
C is the cost of £1 of pension credit, as calculated above
As well as pension credit details, a record should be kept of:
- amount of the transfer value received
- the portion of that transfer value identified as section 9(2B) rights
- amount of pension credit that is section 9(2B) rights
- if the actual length of 2015 scheme membership is less than two years, the length of qualifying service transferred from the former scheme
