Cash equivalent benefits (CEB) meaning

A-day 'A-day' is the widely used term for the broad pension tax 'simplification' reforms that began on 6 April 2006. The changes covered: how much pension contribution was allowed, the kinds of schemes an individual could invest in, the sums that could be taken (and when), and the choices available for any remaining fund. A-day also introduced the annual allowance and the (now abolished) lifetime allowance. See: Annual allowance and Lifetime allowance. AFPS AFPS: Armed forces pension scheme; see Practice Note: Public sector pensions and family proceedings. Accrual rate The speed at which pension benefits build as pensionable service is completed in a final salary scheme, eg 1/60 for each year of pensionable service. Accrued benefits The benefits earned in respect of service up to a specified date. Added years Extra pension provided by adding further years of pensionable service in a salary-related scheme. Such additional years are secured via transfer payments or through additional voluntary contributions/augmentation...

Accrual rate The speed at which pension entitlement builds as pensionable service is completed within a final salary arrangement, e.g. 1/60 for each year of pensionable service. Accrued benefits Benefits relating to service built up to a given date, measured with reference to current earnings or projected future pay. A-day ‘A-day’ is the widely used term for the broad pension tax ‘simplification’ reforms that came into force on 6 April 2006. These changes followed a 2004 government policy to rationalise the British tax system as it applied to pension schemes. The objective was to cut the volume of legislation accumulated under successive administrations, folding the previous eight tax regimes into a single regime for all personal and occupational pensions. Key areas covered included: how much pension contribution was allowed; the range of schemes an individual could invest in; how much an individual could withdraw (and when); and what could be done with the remaining fund. A-Day...

This Practice Note outlines how pension rights can be valued and the factors to be taken into account in the context of family proceedings. It further addresses the practical requirements when appointing an expert to report on pension values, together with the consequences of internal and external transfers of pension credits... Prescribed valuation method Whether a pension is to be offset, attached or shared, the prescribed statutory valuation basis is the cash equivalent (CE). Where the pension is already in payment, this may instead be described as the cash equivalent of benefits (CEB). The rules for calculating and verifying CEs are contained in the Pension Sharing (Valuation) Regulations 2000, SI 2000/1052: reg 4 sets out how CEs for rights within occupational pension schemes are to be calculated and verified regs 5 and 7 set out how CEs for rights in pension arrangements other than occupational pension schemes are to be calculated and verified The CE will be dated as at the...