Proposed relaxation of provisions governing the reduction of transfer values
Under the Occupational Pension Schemes (Transfer Values) Regulations 1996, there are limited circumstances in which an individual’s cash equivalent transfer value can be reduced. There is also a prescribed time-frame for providing individuals with a statement of entitlement of their cash equivalent (i.e. a transfer value quotation). Two recent developments in relation to the calculation of transfer values will provide much needed flexibility to trustees of underfunded final salary schemes.