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

The following formula should be used for calculating CETVs:

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 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 204: CETV factors for men, normal pension age of 65
• Table 205/206: CETV factors for women, normal pension age of 65
• Table 207/208: CETV factors for men, normal pension age of 66
• Table 209/210: CETV factors for women, normal pension age of 66
• Table 211/212: CETV factors for men, normal pension age of 67
• Table 213/214: CETV factors for women, normal pension age of 67
• Table 215/216: CETV factors for men, normal pension age of 68
• Table 217/218: 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 STPS. For the purpose of this guidance, a member's expected NPA in the STPS 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 set out above. 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 Y years and M months the main pension factor would be:

F_x^P(NPA Y years and M months) = F_x^P(NPA (Y)) + (M ⁄ 12) x [F_x^P(NPA(Y+1)) - F_x^P(NPA(Y))]