This note is provided for the Scottish Public Pensions Agency ('SPPA') as administrator of the Scottish Teachers' Superannuation Scheme ('STSS') and the Scottish Teachers' Pension Scheme 2015 ('STPS'). It sets out the method and instructions for calculating the cash equivalent of a member's benefits for divorce purposes.

This guidance should be used both when a member applies for a quotation of the value of the benefits during the divorce proceedings, and after a pension sharing order has been made. Separate instructions cover the calculation of the pension debit to the member and the pension credit to the ex-partner.

A member may have benefits in both the STSS and the STPS. In this instance, separate cash equivalents should be calculated and quoted in respect of their benefits in the STSS and STPS. Further details are set out in the Cash equivalents on divorce: general considerations section.

The guidance is split into the following sections:

• Adjustments for Guaranteed Minimum Pension, which sets out the current approach to be used when making an adjustment to cash equivalents in respect of GMPs.
• Cash equivalents on divorce: general considerations, which provides general guidance on the application of actuarial factors when calculating cash equivalents for divorce purposes.
• Members already in receipt of benefits, which contains instructions on how to calculate cash equivalents for divorce purposes for members who are already in receipt of benefits.
• Active and deferred members aged over NPA, which contains guidance and instructions on how to calculate cash equivalents for divorce purposes for active and deferred members over NPA.
• Active and deferred members aged below NPA, which contains guidance on how to calculate cash equivalents for divorce purposes for active and deferred members under NPA.
• Unusual cases, which sets out some of the special cases that might arise and how these should be processed.

The instructions and factors provided in this note are intended solely for the use of SPPA to determine the cash equivalent of a member's benefits for divorce purposes. The Government Actuary's Department (GAD) does not accept any liability if the factors are used for any other purpose, unless specifically agreed in advance by GAD.

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.