The formula for calculating CETVs is set out in the CETV Calculation Formula subsection.

The factors should be selected according to the member's age last birthday, sex and normal pension age (NPA).

To calculate the value of the benefits, the deferred pension, deferred lump sum (if any) and deferred survivor's pension should be calculated. The deferred pension, deferred lump sum and deferred survivor's pension used in the CETV calculation should include any deferred pension increases awarded prior to the relevant date. Each element is multiplied by the relevant factor from the factors in the consolidated spreadsheet.

We understand NI modification adjustments are no longer needed for CETV calculations. For administrative consistency, we have retained this element in the formulae set out below. However, all NI modification factors have been set to zero in the corresponding tables in the consolidated factor workbook.

The formula below should be used to calculate CETVs in all cases for a member below their NPA except for women aged 60 to 64 with an NPA of 65. Cases involving CETV calculations for women aged 60 to 64 should be referred to GAD.

The relevant factors should be selected from tables 203, 204, 205 and 206, in the consolidated workbook, where the required table depends on the member's sex and NPA.

CETV = (P × F_x^p) + (LS x F_x^LS) + (S x F_x^S) - (NI x F_x^NI)

where:

P = member's deferred pension at the relevant date

LS = member's (automatic) deferred lump sum at the relevant date

S = member's deferred survivor's pension at the relevant date

NI = member's NI modification at the relevant date

F_x^p = relevant pension factor for a member aged x last birthday at the relevant date

F_x^LS = relevant lump sum factor for a member aged x last birthday at the relevant date

F_x^S = relevant survivor's pension factor for a member aged x last birthday at the relevant date

F_x^NI = relevant NI modification factor for a member aged x last birthday at the relevant date

Cases involving women aged 60 to 64 should be referred to GAD. Cases involving non-scheme charges (optants and premature retirements) should also be referred to GAD.