CETV meaning

In this issue: The Pensions Regulator DB superfunds Investments Daily and weekly news alerts Dates for your diary Trackers The Pensions Regulator The Pensions Regulator (TPR) has refreshed its guidance, setting out clearly the circumstances in which a third‑party applicant (e.g. trustees, scheme managers, and sponsoring employers) may formally request that TPR exercises one of the following powers: appointing an independent trustee, a step that can be essential to protect members where trustees fall short of their duties granting extra time by extending the deadline for a cash equivalent transfer (CETV extension) revoking a prohibition order or a suspension order that stops a person from acting as a trustee waiving an automatic disqualification that would otherwise prevent a person from being a trustee of the scheme Responsibility for decisions on these third‑party applications lies with the Determinations Panel, a TPR committee that operates separately and makes decisions independently. Each...

THIS PRACTICE NOTE APPLIES IN RELATION TO DEFINED BENEFIT LIABILITIES How defined benefit (DB) liabilities ought to be assessed depends on a number of factors, in particular: the valuation approach to be adopted. Common exercises undertaken comprise the following: scheme-specific funding valuations as required under Part 3 of the Pensions Act 2004 (PeA 2004) solvency (or buy-out) valuations as required by the Occupational Pension Scheme (Scheme Funding) Regulations 2005, SI 2005/337, reg 7 valuations required by the PeA 2004, ss 143 and 179 (often described respectively as s 143 valuations and s 179 valuations) neutral estimates to meet the requirements of Technical Actuarial Standard 300 (Pensions) cash equivalent transfer values (CETV) as specified under the Occupational Pension Schemes (Transfer Values) Regulations 1996, SI 1996/1847 IAS19 and UK GAAP valuations whether the liabilities under review concern past service or future service, as distinct categories This Practice Note sets...

In this Practice Note, the expressions ‘defined benefit’ or ‘DB benefits’ denote safeguarded benefits for the purposes of section 48 of the Pension Schemes Act 2015 (PSA 2015). Likewise, ‘defined contribution benefit’ or ‘DC benefit’ is used for flexible benefits under PSA 2015, s 74. For further detail on safeguarded and flexible benefits, see Practice Note: Flexible benefits vs safeguarded benefits. Relevant trustee considerations When handling DB to DC transfer requests (or DB to DC conversion requests), trustees of DB occupational pension schemes should take account of the following: Compliance with the cash equivalent transfer value regime Trustees must adhere to the statutory rules of the cash equivalent transfer value (CETV) regime. Those requirements are found in: sections 93–101 of the Pension Schemes Act 1993 (PSA 1993), which set out the eligibility conditions and the steps to follow the Occupational Pension Schemes (Transfer Values) Regulations 1996, SI 1996/1847 (the Transfer Regulations), which prescribe how a member’s cash equivalent is to be calculated...

FORTHCOMING CHANGE: Section 10 of the Finance Act 2022 will raise the normal minimum pension age (NMPA) from 55 to 57 on 6 April 2028, excluding members of the firefighters, police and armed forces public service pension schemes. The Finance Act 2022 also grants members of registered pension schemes a right to access benefits before age 57 if, on or before 4 November 2021, they satisfied one of the following: they already held an unqualified right to take benefits; or they were in the course of a substantive transfer to a scheme that, on or before 4 November 2021, offered an unqualified right to a protected pension age below 57. To rely on this new protection from 2028, the scheme’s rules must have contained, as at 11 February 2021, an unqualified right to take entitlement to scheme benefits before age 57. For further information, see Practice Note: Increasing the normal minimum pension age (NMPA) to 57—pensions impact. THIS PRACTICE...

Name: ________________________________ Date of Birth: ________________________________ Membership Number: __________________ National Insurance Number: ____________________ Company Name: ________________________ Address: ____________________________________ Date Joined Scheme: ___________________ Date of Leaving: ____________________________ To the Trustees of the [ insert name of scheme ] Pension Scheme (the ‘Scheme’). I have benefits within the Scheme and apply to move the value of those benefits from the Scheme as outlined below. This also covers any amounts that would be paid from the Scheme to my dependants or beneficiaries if I were to die. I confirm I have received a statement of entitlement for my Scheme benefits showing the cash equivalent transfer value (CETV) as at my guarantee date. I wish to transfer my benefits to the Receiving Arrangement(s) listed here: Name of Receiving Arrangement: ________________________________ Address of Receiving Arrangement: ________________________________ HMRC Registration Number: ________________________________ DECLARATIONS Decision to transfer out • The choice to transfer my benefits to the Receiving Arrangement is mine alone,...