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 subject to a buy-out election.

There may be instances where part of a member's career average pension is subject to a buy-out election and the remaining pension is not. In this case, the part of the CETV relating to the deferred pension that is subject to a buy-out election should be calculated using the formulae in this section. The elements of the CETV relating to the deferred pension which is not subject to a buy-out election should be calculated using the formulae in the "Calculating CETVs - career average section, deferred pension is not subject to a buy-out election" section. The two parts should then be added together to give the total CETV in respect of their career average benefits.

For calculating a CETV in all cases where the career average section deferred pension is subject to a buyout election the following formula should be used:

CETV = (P x F_x^P x AF_B) + (S x F_x^S)

where:

P is the member's deferred pension (subject to buy-out election) at the relevant date

S is the member's deferred survivor's pension at the relevant date (this should only be the attaching survivor's pension to the member's pension which is subject to the buy-out election)

AF_B is the relevant adjustment factor from table AF1 (Table 226 in Consolidated Factor Workbook)

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

The factors F_x^P and F_x^S should be selected with reference to the member's age, sex and buy-out retirement age. Factor AF_B should be selected with reference to the number of years for which the standard reduction has been bought out.

A member's buy-out retirement age is equal to the member's expected normal pension age less the number of years for which the standard reduction has been bought out. 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.

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