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Employer  >  Trustee Zone  >  OPS Matters  >  New transfer value guidance - sound familiar?

New transfer value guidance - sound familiar?

If you’ve been following our regular updates on the transfer value consultation process then you’ll know that 1 October 2008 was a key date in your calendar. You can find all the links to our previous articles here (Issues 5, 10, 18 and 21) and read them at your leisure.

Quick recap

The Regulator left it late but 2 days before the new regulations kicked in they published their final guidance on the subject. The guidance largely reinforces the points made in the original consultation and covers:

• The calculation of cash equivalent transfer values in respect of defined benefits
  
• The calculation of non-statutory transfer values in respect of defined benefits (including cash transfer sums)
  
• The calculations for schemes in wind-up and for dealing with enquiries connected with schemes in a Pension Protection Fund (PPF) assessment period
  
• The calculation of defined benefits granted in exchange for a transfer-in.

Action points

The new approach to calculating transfer values has been on the horizon as far back as June 2006 you have had plenty of time to come to terms with the potential implications. Now that the guidance is final, if you haven’t done so, you should consider speaking to your scheme actuary.

In addition, if you have appointed a scheme administrator to calculate your transfer values then you should feel comfortable that existing practices/procedures reflect the new calculation basis. After all, the buck stops at your door.

The information provided is based on our current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice.

Source: The Pensions Regulator. Transfer values – Guidance to the trustees of private sector occupational pension schemes providing defined benefits, September 2008.