Those in receipt of benefits do not have an entitlement to a CETV. The pensioner cash equivalent can be calculated using the method and factors in this note, but should be used for divorce purposes only.

There are two sets of tables, which apply for both the STSS and the STPS:

• Tables 301 and 302 - Pensioners who retired not on ill health grounds
• Tables 303 and 304 - Pensioners who retired on ill health grounds

The main differences between the two sets of tables are that the ill health tables allow for the heavier mortality experienced by those who retire due to ill health, and cover a wider range of ages (as members can only retire in normal health once they have met their minimum retirement age under the scheme's regulations).

The calculation date should be selected in line with the Cash equivalents on divorce: general considerations section in this guidance.

The status of the member, the member's age last birthday and the benefits to be valued should all be taken at the calculation date. Further details on the benefits to be used are set out below.

In line with the Adjustments for Guaranteed Minimum Pension section in this guidance, GMP adjustments should not be applied to calculations for members who reach State Pension age on or after 6 April 2016.

For these members, calculations should be undertaken using the methodology set out below, but with any GMP (pre or post 1988) set to zero.

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)

where:

P is the current member's pension - see the Pension benefits section below

S is the 'Survivor's pension' - pension payable on the death of the member to their eligible partner, in respect of a post exit marriage

G^pre is the annual GMP accrued before 6 April 1988, including revaluation to the calculation date (for members who reached SPA before 6 April 2016) or zero (for members who reached SPA on or after 6 April 2016)

G^post is the annual GMP accrued after 6 April 1988, including revaluation to the calculation date (for members who reached SPA before 6 April 2016) or zero (for members who reached SPA on or after 6 April 2016)

NI is the National Insurance modification, where applicable - see the Pension benefits section below

F_x^P is the relevant gross 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 factor for National Insurance modification for a member aged x

F_x^G is the relevant GMP factor for a member aged x

Factors should be selected depending on whether a member retired in ill-health or not, and with reference to their sex and age at last birthday at the calculation date.

The factors in the normal health tables run from age 55. Divorce cases where the member is under 55 and in receipt of benefits, other than an ill-health pension, should be referred to GAD.

Separate cash equivalents should be calculated and quoted in respect of a member's benefits in the STSS and STPS.

The member's pension should be the current annual rate of pension payable and the survivor's pension should be the annual rate which would be payable if the member died on the calculation date (for this purpose, it should be assumed that an eligible survivor exists). The last increase should be that awarded up to and including the April increase immediately before the calculation date.

If the member is over State Pension age and has a National Insurance modification, the pension used should be that after the deduction of the modification. In such cases, the NI factor (F_x^NI) should be set to zero, so the calculation formula (from the Calculation section above) simplifies to:

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

If the member's pension is reduced due to abatement, then the abatement reduction should be ignored for the purpose of this calculation. Benefits should be calculated as though the member had ceased re-employment on the date of calculation, and valued accordingly.

For members who reached State Pension age before 6 April 2016, the cash equivalent must be adjusted to reflect increases on the Guaranteed Minimum Pension (GMP) that are the responsibility of the State. Separate pre and post 1988 GMP figures need to be used.

Where the member has passed GMP payment age, the pre and post 1988 GMP amounts to use are the current annual amounts of GMP in payment. If the member has passed GMP payment age, and their GMP is not yet in payment, then the case should be referred to GAD.

Where needed, annual GMP figures can be obtained by multiplying the weekly GMP figures by 52. The sum of the GMP in respect of service up to 5 April 1988 and 15% of the GMP in respect of service after that date should be multiplied by the appropriate factor in the tables and the resulting figure used in the cash equivalent calculation.

An adjustment may be needed for National Insurance modification. This will apply where a member is under State Pension age.

The amount of National Insurance modification (if any) should be expressed as an annual rate, and increased in line with the pension increases awarded between leaving and the April prior to the date of calculation inclusive. The relevant factor should be applied to that amount.