The Occupational Pension Schemes (Early Leavers: Cash Transfer Sums and Contribution Refunds) Regulations 2006

Calculation and verification of cash transfer sum

2.—(1) Except in a case to which, or to the extent to which, paragraph (2) or (4) applies, cash transfer sums are to be calculated and verified in such manner as may be approved in particular cases by the scheme actuary or in relation to a scheme to which section 47(1)(b) of the 1995 Act (professional advisers) does not apply, by—

(a) a Fellow of the Institute of Actuaries(1);

(b) a Fellow of the Faculty of Actuaries(2); or

(c) 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, subject to paragraph (2), in this regulation and in regulation 4 “actuary” means the scheme actuary or, in relation to a scheme to which section 47(1)(b) of the 1995 Act does not apply, the actuary referred to in sub-paragraph (a), (b) or (c) of this paragraph.

(2) Where the member in respect of whom a cash transfer sum is to be calculated and verified is a member of a scheme having particulars from time to time set out in regulations made under section 7 of the Superannuation Act 1972(3) (superannuation of persons employed in local government service, etc.), that cash transfer sum shall be calculated and verified in such manner as may be approved by the Government Actuary or by an actuary authorised by the Government Actuary to act on his behalf for that purpose and in such a case “actuary” in this regulation and in regulation 4 means the Government Actuary or the actuary so authorised.

(3) Except in a case to which paragraph (4) applies, cash transfer sums are to be calculated and verified by adopting methods and making assumptions which—

(a) if not determined by the trustees of the scheme in question, are notified to them by the actuary; and

(b) are certified by the actuary to the trustees of the scheme—

(i) as being consistent with the calculation of cash equivalents under the requirements of Chapter 4 of Part 4 of the Act (transfer values),

(ii) 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 on which the cash transfer sum is calculated,

(iii) as being consistent with the methods adopted and assumptions made, at the time when the certificate is issued, in calculating the benefits to which entitlement arises under the rules of the scheme in question for a person who is acquiring transfer credits under those rules.

(4) Where a cash transfer sum or any portion of a cash transfer sum relates to money purchase benefits which do not fall to be valued in a manner which involves making estimates of the value of benefits, then that cash transfer sum or that portion shall be calculated and verified in such manner as may be approved in particular cases by the trustees of the scheme and in accordance with methods consistent with the requirements of Chapter 4 of Part 4 of the Act.

(1)

The Institute of Actuaries is located at Staple Inn Hall, High Holborn, London WC1V 7QJ.

(2)

The Faculty of Actuaries is located at Maclaurin House, 18 Dublin Street, Edinburgh EH1 3PP.

(3)

1972 c. 11.