This note is provided for the Department for Education (DfE) as scheme manager of the Teachers' Pension Scheme (TPS).

The purpose of this note is to provide the DfE with guidance on how to use the inverse commutation factors to calculate the pension payable to a member due to the conversion of a cash payment, such as a lump sum or repayment of contributions.

The factors associated with this guidance should not be used for inverse commutation arising from a failure to sign the declaration (see regulation relating to lump sums declaration).

The following changes have been made when reviewing this guidance:

• Important information around the expected audience for the guidance, use of the guidance, review of factors, compliance and limitations applies across all sets of guidance. Rather than being repeated in each set of guidance, this can now be found on the scheme home page. It is important to read this information alongside the guidance.
• Calculation methodology: No changes have been made to the calculation methodology.
• Examples: There are no examples in this guidance. Worked examples, using the calculation methodology, can be found in prior versions of the guidance (though please note that these use historic factors).
• Factor tables: The "Factor Tables" tab contains the names of the tables that are referenced in the calculation methodology. The tables of factors themselves can be found in the most recently published "Consolidated Factors Workbook" which is available by clicking the "Download current Consolidated Factors Workbook" button on the scheme's home page.
• Assumptions: The key assumptions underlying the factors in each note are contained in the Consolidated Factors Workbook.
• Regulations: The regulations that require the production of the actuarial factors and/or guidance that is the subject of this note are summarised in the "Regulations" tab.