The Pensions Regulator

Transfer values

.

.

Introduction
The calculation of CETVs
The best estimate method for calculating CETVs
The alternative method for calculating CETVs
Reducing cash equivalents to allow for underfunding
CETVs for schemes in wind-up and in a PPF assessment period
Non-statutory transfers out and cash transfer sums
Transfers into schemes
Practicalities, administrative expenses, presentation and pensions to former spouses or civil partners
References

---

Introduction

1. We have produced this guidance to help trustees understand and fulfil their new statutory and scheme rule responsibilities in relation to transfer value matters.
2. As from 1 October 2008, it is the responsibility of the trustees to take the decisions on which the calculation of cash equivalent transfer values (CETVs) is based. Previously, the calculation had to be certified by the scheme's actuary as consistent with a professional technical standard.
3. Whilst the guidance is primarily aimed at trustees, it will also be relevant to actuaries and others involved with transfer values, such as scheme administrators. It is also likely to be of interest to employers.
4. Trustees may find it helpful to discuss the more technical aspects of this guidance with their actuary as part of their overall discussions on the assumptions to be adopted for calculating CETVs.
5. The guidance covers:
   • the calculation of CETVs in respect of defined benefits;
   • the calculation of other transfer values in respect of defined benefits which are not CETV as defined in legislation (including cash transfer sums); and
   • the calculation of defined benefits granted in exchange for a transfer-in.
6. The guidance does not cover money purchase CETVs.
7. This guidance must be read in conjunction with the legislation itself. It does not override the legislation.

.

.