Offset Provider meaning

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...

This Practice Note examines how high inflation affects defined benefit (DB) and defined contribution (DC) pension schemes and sets out actions trustees should consider taking. Impact for defined contribution (DC) schemes For DC arrangements, high inflation places a greater burden on members than on trustees or the scheme provider. The main effect is on retirement income—for the following reasons: active and deferred members — where contributions are expressed as a percentage of pay, their real value can diminish if a member’s salary is not increased in line with inflation over time. Furthermore, unless investment returns broadly keep pace with price rises, the projected retirement income of members still building their pension pots will be negatively affected. This may lead some members to postpone their planned retirement date members approaching retirement — such members typically switch to lower-risk investment strategies, for example bonds and cash holdings. However, this approach may do little to offset the impact of high inflation. Individuals nearing retirement should carefully consider...