Further comments regarding different scenarios are described below. If other cases arise which are not covered by this guidance, these should be referred to GAD.
Where a member has one or more pension debits (either in respect of a previous divorce or one or more annual allowance tax charges), the cash equivalent should be calculated in two stages.
- The gross cash equivalent should be calculated ignoring all pension debits.
- The value of each pension debit (revalued to the calculation date) should be calculated as the cash equivalent of a deferred pension of the same amount as the debit.
The final cash equivalent to be used for divorce purposes is the gross cash equivalent calculated in stage one, less the value of all pension debits calculated in stage two.
