Countdown to the new transfer value regulations


Time is ticking! As many trustees are already keely aware, there are now only two months to go before revised transfer value legislation finally becomes law on 1 October 2008. The lengthy consultation process started as long ago as May 2005 when the Actuarial Profession first published proposals for a major revision of their guidance note on transfers (GN11). Amendments to The Occupational Pension Schemes (Transfer Values) Regulations 1996 provide for cash equivalent transfer values (CETVs) to continue to be based on the expected cost to the scheme of providing members’ benefits. However, calculations will need to be done on a scheme specific basis, with trustees required to determine the assumptions. The amendments affect both defined benefit and defined contribution arrangements, but the greatest impact is on the former.

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