Regulation 6 Valuation of protected liabilities

Subject to regulation 7, in the case of protected liabilities M1 the value of a protected liability shall be—

for a section 143 F2determination or section 143 valuation, the estimated cost of securing scheme benefits calculated in accordance with F3Schedule 7 to the Act (pension compensation provisions) to the member by means of an annuity purchased at the F4best value rate available in the market as estimated by the Board at the relevant time;

for a section 179 valuation, the estimated cost of securing scheme benefits in accordance with any guidance issued by the Board in accordance with section 179(4) of the Act, for the member by means of an annuity purchased at the F5best value rate available in the market as estimated by the Board at the relevant time.

Where regulation 3(c) applies, the amount representing the value of a protected liability in respect of the benefits secured by a pre-6th April 1997 contract of insurance shall be excluded from the valuation of the eligible scheme’s protected liabilities.