Regulation 6 Valuation of protected liabilitiesI1

Subject to regulation 7, in the case of protected liabilities^f1 the value of a protected liability shall be –

for an Article 127 F2determination or Article 127 valuation, the estimated cost of securing scheme benefits calculated in accordance with Schedule 6 to the Order (pension compensation provisions) to the member by means of an annuity purchased at the F3best value rate available in the market as estimated by the Board at the relevant time;

for an Article 162 valuation, the estimated cost of securing scheme benefits in accordance with any guidance issued by the Board in accordance with Article 162(4) of the Order, for the member by means of an annuity purchased at the best 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.