Suspension of calculations relating to pensions on divorce (where the effective date is after 29 October 2018) and non-Club transfers

As a result of the change to the discount rate used for public service pensions, as announced in the Budget on 29 October, the factors used to calculate transfer values for non-club transfers and pension on divorce need to be changed with immediate effect.

Please note that Club transfers – transfers between public service pension schemes – will continue to be calculated using existing factors as the benefits provided are intended to provide equivalent value between Club schemes taking account of differences in benefits structure.

With regard to other transfer calculations, however, we cannot provide new estimates of service credit or pension credit for transfers-in, or guaranteed transfer values for transfers-out until we receive new factors. Nor can we provide the values of benefits held in the Scheme known as cash equivalent transfer values (CETVs) for pensions on divorce cases, unless the effective date of the pension share was on or before 29 October.

Therefore, until the new factors are received, we are unable to:

  • process new requests for estimates in relation to non-Club transfers-in;
  • provide final service or pension credit values in relation to non-Club transfers-in;
  • provide guaranteed transfer values for non-Club transfers-out;
  • provide benefit valuation estimates (CETV) for pension on divorce;
  • implement pension on divorce orders with a pension share date after 29 October 2018.

We will process any requests received in the interim once the new factors have been made available.

If you have already received a guaranteed transfer value (GTV) in relation to a prospective transfer-out, any request to proceed within the 3 month guarantee period will be honoured, unless the new factors provide a higher result in which case the higher transfer will prevail.

Information regarding changes to other factors will follow in due course.

Last Updated: 05/11/2018 12:37