12 January 2012
Cash Equivalent Transfer Values (CETVs)
Background: In the budget on 23 March 2011, HM Treasury confirmed that they were considering a review of the basis for the calculation of CETVs payable from public service schemes, including the NHS Pension Scheme. That review is now complete and revised guidance was issued on 26 October 2011.
CETVs for transfers out of the NHS Pension Scheme (non-Club): The impact of the above guidance has been actuarially assessed and, as a result, the factors used by NHS Pensions to calculate CETVs have changed. We are in the process of updating our systems to reflect the new factors, however, until this work is complete, we are not currently able to provide members with a CETV statement, for example if you need one because you are:
- Getting divorced; or
- Transferring your NHS Pension Scheme pension benefits to another pension scheme
Club transfers: New factors for transfers to and from pension schemes within the public sector calculated on a Club basis are effective from 1 January 2012. Again, we are in the process of updating our systems to reflect the new factors.
When our system updates are complete, requests will be dealt with as soon as possible. You should make your request through the normal channels but please be prepared for a delay in getting a response.
Transfers in to the NHS Pension Scheme (non-Club): We are also expecting the factors to change for transfers of pension benefits from other non-Club pension schemes into the NHS Pension Scheme. This means that we are not currently able to provide you with a statement of the amount of transfer-in credit you could get in return for any transfer payment being made to the NHS Pension Scheme. Once the new factors are available, our systems will need to be updated.
Payment of guaranteed CETVs: If we issued a guaranteed CETV (or statement of entitlement) before 26 October 2011 and the option form to go ahead with the transfer was received by us on or after 26 October 2011 and within the 3-month guarantee period, we will pay the better of, the original guaranteed CETV or a revised CETV calculated using the new factors. We are currently in the process of making the comparison calculations and payment will be made as soon as possible.
Further updates will be issued as they become available.