The formula detailed below should be used to calculate the CETV in respect of a member's benefits in the STPS, where the deferred pension is subject to a buy-out election.

There may be instances where part of a member's STPS 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 formula 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 section Calculating CETVs - STPS, 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 STPS benefits.

For calculating a CETV in all cases where the STPS 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 224 in the consolidated factor spreadsheet)

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^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 STPS. For the purpose of this guidance, a member's expected NPA in the STPS is as defined in legislation.

The relevant factors for the STPS 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.

Cases should be referred to GAD if the member has made a buy-out election and they have a GMP entitlement in the STPS or if their STPS pension is subject to NI modification.