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SECTION 9: CALCULATION OF TRANSFER VALUES
  

Part 3: Mixed transfer values

Eligibility for mixed transfer value
   

9.25

 A member whose pensionable service ends on or after 1 February 1988 who would have been entitled, had his pensionable service ended before that date, to a transfer value calculated in accordance with the Rules in Appendix 4, and who has served continuously since that date, may apply on leaving employment for a transfer value calculated in part in accordance with those Rules and calculated in part in accordance with the Rules in Part 1 of this Section (to be referred to as a "mixed transfer value") if:
 
 

(i)

 he meets the conditions for the payment of a cash equivalent transfer value specified in the Rules in Part 1 of this Section;
  
  (ii) the conditions specified in the Rules in Appendix 4 are met;
  
  (iii) the accrued benefits are being transferred to an occupational pension Scheme to be applied in accordance with Rule 9.04(1) other than under the public sector transfer arrangements; and
  
  (iv) the mixed transfer value produces a greater transfer value than one calculated entirely in accordance with Part 1 of this Section.
  
Calculation of mixed transfer value
  
9.26 (1) Where the conditions of Rule 9.25 are met, the member’s reckonable service will be divided into:
  
    (i) that part which related to his service on or before 31 January 1988; and
  
    (ii) that part which relates to his service after that date.
  
    The pension benefits attributable to the two periods of service will be calculated by reference to pensionable earnings at the date on which pensionable service ends.
 
  (2) The transfer value payable will therefore be:
  
    (i) the amount calculated in accordance with the Rules in Appendix 4 based on benefits in respect of the reckonable service on or before 31 January 1998 added to the amount calculated in accordance with the Rules in Part 1 of this Section based on benefits in respect of the reckonable service after 31 January 1988, if the aggregate is greater than the amount of a transfer value calculated in accordance with (ii) below; or
  
    (ii) the amount calculated by reference to Part 1 of this Section, based on the whole of the member’s reckonable service, whichever is payable to meet the member’s requirements. Where a member has an option under Rule 9.05 (2), the option, if it has been exercised, will be taken into account in calculating benefits under (i) and (ii) above.
  
9.27 When calculating a mixed transfer value, one or more of the following matters may be taken into account, as appropriate:
  
  (i) where added years of pension credit are being bought by periodical contributions which began on or before 31 January 1988, the whole of the additional pension credit actually purchased on or before the date on which pensionable service ends will be added to the period of reckonable service referred to in Rule 9.26 (1)(i) above;
  
  (ii) any guaranteed minimum pension benefits to which the member is entitled will be divided between the period of reckonable service referred to in Rule 9.26(1)(i) and Rule 9.26(1)(ii) in the same proportion that the service which gives rise to such benefits on or after 6 April 1978 and on or before 31 January 1988 bears to the service which gives rise to such benefits on or after 1 February 1988 up to the date on which pensionable service ends. Where a transfer value has been received by this Scheme which includes the transfer of guaranteed minimum pension benefits, the actual service which gives rise to those benefits should be taken into account for the purposes of calculating the proportion referred to above in the following manner.
  
    (a) Where the transfer value is received on or before 31 January 1988, the actual length of service in the previous Scheme(s) on or after 6 April 1978 which gives rise to guaranteed minimum pension benefits should be added to the service under this Scheme on or before 31 January 1988 (regardless of the amount of reckonable service that the transfer value bought in this Scheme);
  
    (b) Where the transfer value is received on or after 1 February 1988, the actual length of the service in the previous scheme(s) on or after 6 April 1978 which gives rise to guaranteed minimum pension benefits should be added to the service under this Scheme on or after 1 February 1988 (regardless of the amount of reckonable service that the transfer value bought in this Scheme);
  
  (iii) where more than 6 months has elapsed between the date on which pensionable service ends and the date on which the transfer value is payable, the amount based on the period of reckonable service referred to in Rule 9.21(1)(i) will be increased by a sum of interest calculated by reference to paragraph 6 of the Appendix 4. No interest will be payable in respect of the amount based on the period of reckonable service referred to in Rule 9.26(1)(ii) since that amount will be calculated in accordance with Rule 9.05.
  
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