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 "Calculating CETVs - career average section, deferred pension is not subject to a buy-out election". 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 buy-out 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

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

The factors F_x^Pand 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 NPA less the number of years for which the standard reduction has been bought out. NPA 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: CETV factors for men, normal pension age of 65
• Table 133: CETV factors for women, normal pension age of 65
• Table 143: CETV factors for men, normal pension age of 66
• Table 153: CETV factors for women, normal pension age of 66
• Table 163: CETV factors for men, normal pension age of 67
• Table 173: CETV factors for women, normal pension age of 67