Date posted: 01/06/2008

Audience: This notice will be of particular interest to:

  • Finance Directors and Managers involved in the preparation of resource accounts.

Action: Ensure that this document is read and understood by all parties involved in the preparation of resource accounts.

Timing: If possible you should apply this guidance when you prepare the resource accounts for 2007-08.

Annex 13C – Additional text required in the explanation/definition of CETV as suggested in Annex 13C of EPN210.

The standard text that exists in Annex 13C should make clear that the CETV figures quoted are shown gross; that is, they do not reflect the impact, if any, of Lifetime Allowance Tax charges which – where these occur – will reduce the value of the pension benefits. The supplemental text will need to be incorporated both in the Civil Service and the Ministerial explanation of the CETV. The standard text for 2008-9 resource accounts will reflect this change but, if possible, it would be advisable to incorporate this into your 07/08 accounts as well.

Please see below for an example of the new text which has been emphasised in bold.

Cash Equivalent Transfer Values A Cash Equivalent Transfer Value

(CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies. The figures include the value of any pension benefit in another scheme or arrangement which the individual has transferred to the Civil Service pension arrangements They also include any additional pension benefit accrued to the member as a result of their purchasing additional pension benefits at their own cost. CETVs are calculated within the guidelines and framework prescribed by the Institute and Faculty of Actuaries and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are drawn.


This document supplements EPN210


Enquiries about content, distribution or to receive in a different format
01256 846414
Employer Helpdesk
Civil Service Pensions
Grosvenor House
Basing View
RG21 4HG

1 June 2008
Last updated:
24 April 2023