This note is provided for the UK Atomic Energy Authority (UKAEA or the Authority) in its role as manager of the UK Atomic Energy Authority Pension Schemes ("the UKAEA Schemes").

The purpose of the note is to provide the Authority with factors and guidance to be used when calculating the pension debit to be applied to a member's pension where a member opts to make use of the scheme pays mechanism to enable the scheme to pay an annual allowance tax charge on the member's behalf.

This note does not cover the method for determining the amount of any Annual Allowance tax charge.

We are unaware of any legal advice taken by the Authority in respect of backdating. The Government Actuary's Department (GAD) confirms that it has not taken any legal advice on this point in respect of the UK Atomic Energy Authority pension schemes. The Authority may wish to consider whether it should take legal advice to identify whether there remain any material issues in relation to its approach to backdating.

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 historic 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.

The tables in this note should be used only to calculate the pension and lump sum debits applying to a member who has elected for the scheme to pay annual allowance related tax charges on their behalf.

These factors should not be used to calculate debits resulting from pension sharing on divorce.

The administrator should ensure that a member is eligible to use the scheme pays mechanism before applying the approach set out in this guidance note.

The following special cases should be referred to GAD:

• Where the member has or will have any "non-scheme" or "non-charged" benefits that are financed by the employer and when they fall due. These members may be optants (i.e. members who have had their pension age reduced to 60) or members with Continuing Annual Payments (CAPs) resulting from premature retirement.
• Implementing annual allowance debits at retirement where the member does not have normal pension age 60 and they are retiring after their NPA or in ill health.
• Implementing annual allowance debits on voluntary early retirement before age 55 where members will also receive pension increases at age 55 in respect of a period before their retirement. See the end of the Instructions: Implementing pension debits at retirement section for an example of how this may arise.