1. The transfer value payable under regulation J2, J3(1), J14 or Q2(2) in respect of any person is an amount equal to—
(1) the aggregate of the sums calculated in accordance with paragraph 2 below in respect of his accrued pension, accrued retiring allowance and, if the person is a man, his accrued widow’s pension, less—
(a)a sum (calculated in accordance with paragraph 2 below) in respect of accrued modification, and where a request has been received under regulation J2(3) his guaranteed minimum pension;
(b)any additional contributory payments remaining unpaid when he ceased to be employed in his local government employment, and
(c)in the case of a person in relation to whom when he ceases to be employed in local government employment and
(i)a contributions equivalent premium is paid under section 42 of the Pensions Act, or
(ii)a limited revaluation premium is paid under section 45 of that Act otherwise than by the scheme managers of his approved non-local government scheme,
a sum equal to the amount of that premium,
together with—
(2) compound interest calculated in accordance with regulation J7 in respect of the period beginning immediately after the date on which the person ceased to be employed in his local government employment and ending with the date on which the transfer value is paid (but no interest is to be included in the transfer value if that period is less than 6 months).
2.—(1) The sums mentioned in paragraph 1 shall be calculated as follows—
(a)the accrued pension shall be multiplied by the pension factor,
(b)the accrued retiring allowance shall be multiplied by the retiring allowance factor,
(c)the accrued modification shall be multiplied by the modification factor, and
(d)the guaranteed minimum pension shall be multiplied by the guaranteed minimum pension factor,
such factors being the factors in the appropriate Table specified in sub-paragraph (3) in relation to the person’s age at the date when he ceased to be employed in local government employment.
(2) The sum in respect of accrued widow’s pension shall be calculated by multiplying the accrued widow’s pension by 4 in the case of a transfer value payable under regulation J2 or J3(1), and by 2.4 in the case of a transfer value payable under regulation J14 or Q2(2).
(3) For the purposes of sub-paragraph (1) the appropriate Table shall be—
(a)in the case of a transfer value payable under regulation J2 or J3(1) the relevant Table in Part II, and
(b)in the case of a transfer value payable under regulation J14 or Q2(2) the relevant Table in Part III.
(4) The guaranteed minimum pension shall be the guaranteed minimum calculated in accordance with section 35 of the Pensions Act.
3. In this Schedule—
“accrued pension” means the annual retirement pension (however named) to which, having regard to regulations E1(3) and E32(2) and apart from any reduction falling to be made in that pension in connection with a retirement pension under section 30 of the Insurance Act or section 28 of the Social Security Act 1975 or graduated retirement benefit under section 36 of the Insurance Act, the person would have become entitled if, on the date when he ceased to be employed in his local government employment—
he had attained the age of 65 years; and
where the person ceased to be employed in that employment before 31st March 1972, he had complied with any requirement as to a minimum period of qualifying service and, notwithstanding anything in any enactment—
if in that employment he was a contributory employee within the meaning of the Act of 1937, for the purpose of calculating the amount of that pension his service had been calculated in accordance with regulation 4(1) to (1B) of the Benefits Regulations; and
his entitlement to that pension had been calculated by reference to completed years and completed days;
where the person ceased to be employed in that employment on or after 31st March 1972, he had been entitled to reckon an aggregate of not less than 5 years' reckonable service and qualifying service; and
he had completed any additional contributory payments;
“accrued retiring allowance” means the lump sum retiring allowance (however named) to which the person would have become entitled if, on the date when he ceased to be employed in his local government employment—
he had attained the age of 65 years, and
where the person ceased to be employed in that employment before 31st March 1972, he had complied with any requirement as to a minimum period of qualifying service and, notwithstanding anything in any enactment—
if in that employment he was a contributory employee within the meaning of the Act of 1937, for the purpose of calculating the amount of that allowance his service had been calculated in accordance with regulation 4(1) to (1B) of the Benefits Regulations; and
his entitlement to that allowance had been calculated by reference to completed years and completed days;
where the person ceased to be employed in that employment on or after 31st March 1972, he had been entitled to reckon an aggregate of not less than 5 years' reckonable service and qualifying service; and
he had completed any additional contributory payments; and
if the person is a man, he had been married and he and his wife had not been judicially separated;
“accrued widow’s pension” means the annual widow’s pension (however named) which, after any initial period during which it might not have been payable, would have been payable in respect of the person if, on the date when he ceased to be employed in his local government employment—
he had been married and he and his wife had not been judicially separated; and
by virtue of his having attained the age of 65 years, he had been in receipt of a pension equivalent to his accrued pension; and
he had died;
“accrued modification” means the amount by which the accrued pension would be reduced in connection with retirement pension under section 30 of the Insurance Act or section 28 of the Social Security Act 1975 or graduated retirement benefit under section 36 of the Insurance Act.