# The Occupational Pension Schemes (Transfer Values) Regulations 1996, Regulation 7A: Manner of calculation of initial cash equivalents for salary related benefits other than cash balance benefits not calculated by reference to final salary

Extent: E+W+S

(1) For salary related benefits other than cash balance benefits in respect of which the available sum is not calculated by reference to final salary, the initial cash equivalent is to be calculated—
(a) on an actuarial basis; and
(b) in accordance with paragraph (2) and regulation 7B.
(2) The initial cash equivalent is the amount at the guarantee date which is required to make provision within the scheme for a member’s accrued benefits, options and discretionary benefits.
(3) For the purposes of paragraph (2), the trustees must determine the extent—
(a) of any options the member has which would increase the value of his benefits under the scheme;
(b) of any adjustments they decide to make to reflect the proportion of members likely to exercise those options; and
(c) to which any discretionary benefits should be taken into account, having regard to any established custom for awarding them and any requirement for consent before they are awarded.

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Source: https://www.legislation.gov.uk/uksi/1996/1847/regulation/7A (the official version)
Page: https://openlegislation.uk/occupational-pension-schemes-transfer-values-regulations-1996/regulation-7A
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.