The formulae detailed below should be used to calculate the CETV in respect of a member's benefits in the career average section, where the deferred pension is not subject to a buy-out election.

CETV = (P x F_x^P) + (S x F_x^S) - (NI x F_x^NI)

where:

P is the member's deferred pension at the relevant date

S is the member's deferred survivor's pension at the relevant date

NI is the member's NI modification at the relevant date

F_x^P is the relevant pension factor for a member aged x

F_x^S is the relevant survivor's pension factor for a member aged x

F_x^NI is the relevant NI modification factor for a member aged x

The relevant factors for the career average section are as follows:

• Table 123 (Table 204 in Consolidated Factors Workbook): CETV factors for men, normal pension age of 65
• Table 133 (Table 205 and table 206 in Consolidated Factors Workbook): CETV factors for women, normal pension age of 65
• Table 143 (Table 207 and table 208 in Consolidated Factors Workbook): CETV factors for men, normal pension age of 66
• Table 153 (Table 209 and table 210 in Consolidated Factors Workbook): CETV factors for women, normal pension age of 66
• Table 163 (Table 211 and table 212 in Consolidated Factors Workbook): CETV factors for men, normal pension age of 67
• Table 173 (Table 213 and table 214 in Consolidated Factors Workbook): CETV factors for women, normal pension age of 67
• Table 183 (Table 215 and table 216 in Consolidated Factors Workbook): CETV factors for men, normal pension age of 68
• Table 193 (Table 217 and table 218 in Consolidated Factors Workbook): CETV factors for women, normal pension age of 68

The factors should be selected with reference to the member's age, sex and normal pension age. Normal pension age is defined as a member's state pension age (or 65, if that is higher) in the career average section. For the purpose of this guidance, a member's expected NPA in the career average section is as defined in legislation.

We understand National Insurance (NI) modification adjustments are no longer needed for CETV calculations. For administrative consistency, we have retained this element in the formulae. However, all NI modification factors have been set to zero in the corresponding tables in the consolidated factor workbook.

Where a member has a non-integer normal pension age, then factors should be interpolated using the same method as used for calculating transfer payments for the purposes of The Public Sector Transfer Club.

For example, for a member with a normal pension age of 67 years and 2 months the main pension factor would be:

F_x^P(NPA 67 years 2 months) = F_x^P(NPA67) + (2 / 12) x [F_x^P(NPA68) - F_x^P(NPA67)]