I really don't understand what a CETV is and how to calculate it

dutchcloggie

She's not reluctant. She's offered to show me the paperwork. Apparently it is only the state pension part she's worked out with a calculator. 

So on my annual pension statement it says "hypothetical annuity cost". Is this roughly the same as a CETV?

Brynsam

dutchcloggie said:

She's not reluctant. She's offered to show me the paperwork. Apparently it is only the state pension part she's worked out with a calculator. 

So on my annual pension statement it says "hypothetical annuity cost". Is this roughly the same as a CETV?

Working out the state pension part 'with a calculator' doesn't work. She needs to get an online forecast.
 
See https://contactcentreservices.nhsbsa.nhs.uk/selfnhsukokb/AskUs_Pensions/en-gb/5854/nhs-pensions-total-reward-statements-trs/17032/what-is-the-hypothetical-annuity-cost

In particular note the comment: 'This amount is for information only and it is not possible to take this value from the pension scheme and it must not be used as a Cash Equivalent Transfer Value (CETV) or for divorce purposes'.

Why not just get on and ask the scheme for a CETV if you've not yet done so?

dutchcloggie

Thanks.

Yeah I can ask the scheme for a figure. Currently takes 3-4 months and seeing as we are only really declaring the figures because the document asks for them (i.e. we won't claim anything from each other, regardless of the figures), it sea to matter little to me what the exact figure is. I just wanted to check what the right way is to obtain these figures. My solicitor has said that if I have a figure on an annual statement, I can use that too. I guess they say it should not be used in a divorce case because it could be used as a figure to base a settlement on. And that is not what we need it for. 
Hence my question: is the hypothetical annuity cost a similar thing to CETV, regardless of it being for divorce purposes or not?

hyubh

dutchcloggie said:

Yeah I can ask the scheme for a figure. Currently takes 3-4 months and seeing as we are only really declaring the figures because the document asks for them (i.e. we won't claim anything from each other, regardless of the figures), it sea to matter little to me what the exact figure is. I just wanted to check what the right way is to obtain these figures. My solicitor has said that if I have a figure on an annual statement, I can use that too. I guess they say it should not be used in a divorce case because it could be used as a figure to base a settlement on. And that is not what we need it for. 
Hence my question: is the hypothetical annuity cost a similar thing to CETV, regardless of it being for divorce purposes or not?

As other repondants have said, you need to request a divorce CETV from the scheme administrator. It's its own thing.

Silvertabby

A divorce CETV is one of the most complicated calculations in the LGPS, so I'm pretty sure that the same applies to NHS pensions.
The figures you need don't appear on your benefit statements - they have to be specifically requested.  

Brynsam

dutchcloggie said:

My solicitor has said that if I have a figure on an annual statement, I can use that too. 

Point them towards the NHS website which says you shouldn't use it and ask why they think they know better.

Why all the fuss about waiting a few months?

dutchcloggie

Brynsam said:

Why all the fuss about waiting a few months?

Because although the divorce is 'amicable', I am finding it mentally very difficult to be married to someone who has treated me incredibly badly. So if I can get divorced sooner rather than later, then that would be my preferable option. 

Thanks for the answers. I guess what I wanted to know was: The document just needs a figure putting on it. Since we are not claiming anything from each other, that figure is kind of irrelevant. Hence I was trying to figure out the quickest way of getting it done that is still legal. With a consent order, the judge relies on both parties being truthful and generally the judge does not ask for documents that prove the figures quoted if both parties agree to the figures in the document.