The benefit provided is a pension paid from the ex-partner's normal pension age. Normal pension age is defined as an ex-partner's State Pension age (or 65, if that is higher) in the career average section. For the purpose of this guidance, an ex-partner's expected NPA in the career average section is the same as their State Pension age as set out in HM Treasury Directions.
The benefits are paid immediately if the ex-partner is already above their NPA.
The ex-partner's share of the CETV should be calculated.
The pension amount is the share of CETV divided by the relevant pension factor for an ex-partner aged x (FxP):
Pension amount = Share of CETV / FxP
The relevant factors set out in Factor Tables are as follows:
- Table 423: Factors for male ex-partners, NPA 65 (Table x-317 in the Consolidated Factors Workbook)
- Table 433: Factors for female ex-partners, NPA 65 (Table x-318 in the Consolidated Factors Workbook)
- Table 443: Factors for male ex-partners, NPA 66 (Table x-319 in the Consolidated Factors Workbook)
- Table 453: Factors for female ex-partners, NPA 66 (Table x-320 in the Consolidated Factors Workbook)
- Table 463: Factors for male ex-partners, NPA 67 (Table x-321 in the Consolidated Factors Workbook)
- Table 473: Factors for female ex-partners, NPA 67 (Table x-322 in the Consolidated Factors Workbook)
- Table 483: Factors for male ex-partners, NPA 68 (Table x-323 in the Consolidated Factors Workbook)
- Table 493: Factors for female ex-partners, NPA 68 (Table x-324 in the Consolidated Factors Workbook)
Factors should be selected with reference to the ex-partner's sex and age at calculation date, and normal pension age. The factors used to calculate the benefits for the ex-partner should be consistent with the factors used to calculate the CETV. If there is any doubt over which factors should be used, please contact GAD.
Where a pension credit member has a NPA that is a whole number of years and months, the factors should be determined using the appropriate factors in the Factor Tables using straight line interpolation based on months. For example, to determine the factors applicable to a pension credit member with a normal pension age of 66 years and 2 months, the formula below should be used:
FP(NPA 66 yrs, 2 mths)= FP(NPA66) + {(2 / 12) x [(FP (NPA67) - FP (NPA66)]}
Where:
FP NPAxx is the factor applying for a normal pension age of xx
Some pension credit members will have a State Pension age that falls on a specified date. This may mean that their NPA is based on years and days rather than years and whole months. In this case, the factors should be determined using the appropriate factors in the Factor Tables using straight line interpolation based on days. For example, to determine the factors applicable to a pension credit member with a normal pension age of 67 years and 249 days, the formula below should be used:
FP (NPA 67 yrs, 249 days) = FP(NPA67) + {(249/365) x [FP(NPA68) - FP(NPA67)]}
Where:
FP NPAxx is the factor applying for a normal pension age of xx
