# The Personal Pension Schemes (Transfer Values) Regulations 1987, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations are all made under provisions of the Social Security Pensions Act 1975 (“the 1975 Act”) as modified by Regulations made under the Social Security Act 1986 (“the 1986 Act”) before the end of 12 months from commencement of the relevant provisions as modified. Consequently, by virtue of section 61(5) of the 1986 Act, the provisions of section 61(2) and (3) of the 1975 Act (as amended by section 86(1) of, and paragraph 94 of Schedule 10 to, the 1986 Act), which require reference to the Occupational Pensions Board of, and a report by the Board on, proposals to make regulations for certain purposes of both Acts, do not apply to them.
They make provision in relation to personal pension schemes for the calculation and verification of cash equivalents (within the meaning of Part II of Schedule 1A to the Social Security Pensions Act 1975, as modified so as to have effect in relation to personal pension schemes by the Personal and Occupational Pension Schemes (Modification of Enactments) Regulations 1987).
Regulation 2 sets out the requirements which an occupational pension scheme, or a personal pension scheme, must satisfy if a cash equivalent is to be used for acquiring transfer credits or rights under it.
Regulation 3 provides for the manner in which a cash equivalent is to be calculated and verified: in particular, except where the calculation or variation does not involve making estimates of the future value of benefits, it must be such manner as may be approved by an actuary.
The publication “Retirement Benefit Schemes — Transfer Values (GN11)”, referred to in regulation 3(2)(b)(ii), may be obtained from the Institute of Actuaries, Staple Inn Hall, High Holborn, London WC1V 7QJ, and from the Faculty of Actuaries, 23 St Andrew Square, Edinburgh EH2 1AQ.
Regulation 4 sets out the circumstances in which a cash equivalent is to be increased or reduced to an amount greater or less than the exact equivalent of the benefits in question.

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Source: https://www.legislation.gov.uk/uksi/1987/1112/note (the official version)
Page: https://openlegislation.uk/personal-pension-schemes-transfer-values-regulations-1987/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.