This note is provided for the Scottish Public Pensions Agency (SPPA) as scheme manager of the Scottish Teachers' Pension Scheme (STPS).
The Public Sector Transfer Club: Memorandum by the Cabinet Office issued in April 2019 ('the Club memorandum') sets out how the CARE Club transfer out payment should be calculated for "inner Club" transfers. This note sets out the additional guidance required above that provided in the Club Memorandum to process Club transfers out of the STPS.
This note should be used in combination with the approach set out in the Club memorandum.
If a member has made a buy-out election, their accrued pension needs to be uplifted and the CARE Club transfer out payment is based on the uplifted pension.
Details on the requirements for Club transfers out of the STPS can be found in the Club transfers out of STPS section.
A separate guidance document covers inner Club transfers into the STPS.
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 historical 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.
