The Pensions Regulator has issued its final guidance on calculating cash equivalent transfer values for trustees of defined benefit (DB) pension schemes to coincide with new regulations that came into force under the Occupational Pension Schemes (Transfer Values) (Amendment).
The guidance is aimed at trustees, who will now assume responsibility for taking decisions regarding the method and assumptions on which transfer values are based. Previously, the CETV calculation had to be certified by a DB scheme’s actuary.
Punter Southall welcomed the timing of the guidance but expressed concern that it did not go far enough and said there are several areas where the guidance is unclear or appears to take a stronger line than the stated intention of the regulations. Joanne Livingstone, principal and technical director, said: “The Regulator has moved with impressive speed to finalise its guidance, given the lateness of the original draft guidance. However, time pressures remain on trustees as they seek to decide how to reflect this guidance, especially where the Regulator is suggesting changes to their existing transfer value practices.”