These members should be valued as though they were immediate pensioners.

It is our understanding that deferred members over scheme NPA will be provided with a CETV, and separate information about other prior entitlements. The CETV will reflect pension payments from the calculation date. Backpayments potentially due to the member in respect of the period between NPA and the calculation date, and the amount of any automatic lump sum due at NPA, will not be included in the CETV. Details of these benefits will be separately provided to the Court.

The pensioner cash equivalent is calculated differently for members aged over NPA in the NPA 60 section of the STSS and for members aged over NPA in the NPA 65 section of the STSS and the STPS.

For an active or a deferred member aged above NPA in the NPA 65 section of the STSS or aged over NPA in the STPS, the pensioner cash equivalent should be calculated as:

CE = (P x F_x^P) + (S x F_x^S) - (G^pre + 0.15 x G^post) x F_x^G

where the pension P should:

• be that payable at the calculation date
• include any late retirement uplift that is applicable
• be after the deduction of any National Insurance modification

All other items are as defined in the Calculation sub-section under the Members already in receipt of benefits section.

For an active member aged 60 or over but under SPA in the NPA 60 section of the STSS, the pensioner cash equivalent should be calculated as:

CE = (P x F_x^P) + (S x F_x^S) - (G^pre + 0.15 x G^post) x F_x^G - (NI x F_x^NI) + LS

In this case, the National Insurance modification should not be deducted from the pension P (as it is valued separately later in the formula). LS the retirement lump sum that would be paid if the member had retired on the calculation date and all other items are as defined in the Calculation sub-section under the Members already in receipt of benefits section.

The same formula should be used for deferred members. However, no retirement lump sum LS should be used, and pension entitlements should reflect those payable at the calculation date. This is because, as described above, details of any backpayments and lump sums will be provided to the Court separately.

For an active member aged SPA or above in the NPA 60 section of the STSS, the pensioner cash equivalent should be calculated as:

CE = (P x F_x^P) + (S x F_x^S) - (G^pre + 0.15 x G^post) x F_x^G + LS

where the pension P should be that after the deduction of any National Insurance modification, LS is the retirement lump sum that would be paid if the member had retired on the calculation date and all other items are as defined in the Calculation sub-section under the Members already in receipt of benefits section.

The same formula should be used for deferred members. However, no retirement lump sum LS should be used, and pension entitlements should reflect those payable at the calculation date. This is because, as described above, details of any backpayments and lump sums will be provided to the Court separately.