Where the member is under their normal pension age (NPA), and the benefits have not yet come into payment, the Cash Equivalent Transfer Value (CETV) should be quoted. This should be calculated using the same approach as would apply to a normal CETV (i.e. non-Club transfer out), even if the member is not normally entitled to a transfer value. Please refer to the separate guidance which has been provided for calculating CETVs.

For guidance on optants, see the Unusual cases section.

The cash equivalent transfer value is subject to an underpin. This is equal to any transfer payments previously received which have increased the member's reckonable service, plus the member's contributions since joining. If this amount is greater than the CETV, then it should be used as the cash equivalent of the member's benefits for divorce purposes. The application of this underpin is described in more detail in the Scheme's Rules.

These should be valued as though they were immediate pensioners. However, the retirement lump sum should be added to the value obtained, i.e. the calculation should be:

CE = (P × F_x^P) + (S × F_x^S) - (G^pre + F^post88gmp × G^post) × F_x^G - (NI × F_x^NI) + LS

where all items above are defined as those in the Members already in receipt of benefits: Instructions section, and LS is the retirement lump sum that would be paid if the member had retired on the calculation date.