06 July 2007 - Consultation on draft regulations on pensions transfer values
A consultation begins today on draft regulations on the calculation of pensions transfer values.
The draft regulations provide that the calculation of transfer values will be based on the expected cost to the scheme of providing the pension.
The consultation runs until 17 August, 2007.
The Government announced in January that trustees will be required to determine assumptions in the calculation of pensions transfer values on a “best estimate” basis. Discount rates will have regard to “best estimates” of future returns.
This approach will mean that the success or sustainability of the pension scheme is not put in jeopardy by any transfers that do take place.
Notes for Editors
- Copies of the consultation document can be obtained from www.dwp.gov.uk/consultations/2007
- The draft regulations follow a Government consultation on approaches to calculating transfer values. The Government published its response to the consultation in January this year. The consultation and Government response are available at www.dwp.gov.uk/consultations/2006
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