Regulation 2 Manner of calculation and verification of cash equivalents mentioned in section 5(8) and (10)(a)(i) of the Act

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

reg. 2(1) words substituted by Occupational and Personal Pension Schemes 1994 Sch. 2 para. 16(3)(a)
reg. 2(2) words substituted by Occupational and Personal Pension Schemes 1994 Sch. 2 para. 16(3)(b)
reg. 2(3)(b)(ii) words substituted by Occupational and Personal Pension Schemes 1994 Sch. 2 para. 16(3)(c)

(1)

Except in a case to which paragraph (3) applies, the cash equivalent mentioned in section 5(8) of the Act of protected rights (being those rights under a scheme, which has ceased to be an appropriate scheme, whose cash equivalent is to be the amount of a personal pension protected rights premium) shall be calculated and verified—

(a)

in such manner as may be approved in particular cases by the trustees of the scheme, and

(b)

by adopting methods consistent with the requirements of Schedule 1 to the Act.

(2)

Except in a case to which paragraph (3) applies, the cash equivalent mentioned in section 5(10)(a)(i) of a person’s rights (being those rights under a scheme, which has ceased to be an appropriate scheme, whose cash equivalent is to be used to supplement a personal pension protected rights premium) shall be calculated and verified in such manner as may be approved in particular cases by the trustees of the scheme.

(3)

In a case where the rights under a scheme mentioned in paragraph (1) or (2) fall, either wholly or in part, to be valued in a manner which involves making estimates of the value of benefits, the cash equivalent of those rights shall be calculated and verified—

(a)

in such manner as may be approved in particular cases by—

(i)

a Fellow of the Institute of Actuaries, or

(ii)

a Fellow of the Faculty of Actuaries, or

(iii)

a person with other actuarial qualifications who is approved by the Secretary of State, at the request of the trustees of the scheme in question, as being a proper person to act for the purposes of these regulations in connection with that scheme,

and in this regulation “actuary” means any person such as is referred to in head (i), (ii) or (iii) of this sub-paragraph; and

(b)

by adopting methods and making assumptions which—

(i)

if not determined by the trustees of the scheme in question, are notified to them by an actuary, and

(ii)

are certified by an actuary to the trustees of the scheme as being consistent with “Retirement Benefit Schemes—Transfer Values (GN11)” published by the Institute of Actuaries and the Faculty of Actuaries and current at the date of the calculation, and, in the case of protected rights, as being consistent with the requirements of Schedule 1 to the Act.