Regulation 2 Amendment of the Transfer Values Regulations

Regulation 7 of the Transfer Values Regulations (manner of calculation and verification of cash equivalents) is amended in accordance with this regulation.

In paragraph (1) for “paragraph (2) or (5)” substitute “paragraph (2), (2A) or (5)”.

After paragraph (2) insert—

“(2A)

Where a member, in relation to whom a cash equivalent is to be calculated and verified, is a member of a scheme modified by—

(a)

the British Coal Staff Superannuation Scheme (Modification) Regulations 1994^f1; or

(b)

the Mineworkers' Pension Scheme (Modification) Regulations 1994^f2,

the cash equivalent of his bonus shall be calculated and verified by the actuary to reflect the fact that a reduced bonus, or no bonus, may become payable in accordance with the provisions governing the scheme in question.

(2B)

For the purposes of paragraph (2A) “bonus” means any—

(a)

augmentation of his benefits; or

(b)

new, additional or alternative benefits,

which the trustees of the scheme in question have applied to the member’s benefits, or granted to him in accordance with the provisions governing that scheme, on the basis of findings as to that scheme’s funding position.”.