New rules and guidance on how pension transfer values are calculated

4 May 2012 In March, we highlighted (see Updates) the FSA’s consultation on their to change the way that pension transfer values are calculated. These are often considered in the context of moving a pension pot from an existing defined benefit arrangement into a separate defined benefit scheme but also have influence in other areas of establishing cash equivalence: e.g. tax-free commutation, inter-scheme transfers, purchase of addditional years accrual and so forth. The FSA has noted, particularly given the risk involved in given up the certainty of DB, that they would expect the starting point for pensions transfer advice to…

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Financial Services Authority : Consultation on how pension transfer values are calculated

22 March 2012 The FSA is coming to the end of the consultation period on proposals to change the way pension transfer values are calculated. This consultation, ending on 25 March, seeks to “clarify and update the current standards and aim to ensure that pension scheme members considering a transfer are given a fair assessment of what they will receive in retirement”. The FSA defines the scope of a pension transfer as the process by which a pension is moved from a DB into a personal pension scheme, but the approach could have influence in other areas of establishing cash…

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