CETV Calculation question

We are trying to work out CETV valuations for mine and ex final salary pension. Length of service is similar in both schemes, one a private DB scheme and one a Civil service scheme. Both CETV requests were initial requests.

Private DB CETV is roughly equal to x 20 accrual to date (similar to LTA calculations) but TPS is closer to x 10 accrual to date. This is creating a disparity. What is the reason for such a marked difference and any way to rectify the differences?

Happy for pension sharing order to equalise schemes but is hard when CETVs don’t look to be on a like for like basis? Would paying for actuarial valuation on civil service scheme be beneficial (pots are not insignificant at c 35% and 22% of LTA to date) ?

Thanks

Hi

An actuary would be able to work out how to divide the pensions so e.g. you have equality of income in retirement. They do very clever sums based on all sorts of things like ages, the benefits provided by the schemes, genders, dates of retirement, whether you can share within the scheme or have to transfer a cash sum out etc etc. If the pensions are worth more than say £100k each, an actuary could be a good investment.

If you want to get a rough guide, you can look at the benefits statements to see what income each of the current funds will generate on retirement. This will give you an idea of the total income from the whole pension pot and you can then work out a basic percentage division from that.

The difference in the schemes is to do with the value of the benefits - including stuff like index linking which you would get with a Civil Service pension.

Hadenoughnow