The Funded Public Service Pension Schemes (Reduction of Cash Equivalents) Regulations 2015

Transfer report

2.—(1) The trustees or managers of a funded public service defined benefits scheme, or part of such a scheme, may request an actuary to prepare a report (a “transfer report”) if they consider that—

(a) there may now or in the future be an increased likelihood of payments out of public funds, or of increased payments out of public funds, having to be made into the scheme so that it can meet its liabilities, and

(b) the increased likelihood may be connected with the exercise or expected future exercise of rights to take a cash equivalent acquired under section 94 (right to cash equivalent) of the 1993 Act.(1)

(2) The trustees or managers of a funded public service defined benefits scheme, or part of such a scheme, which is designated or the designation of which is extended, must request an actuary to prepare a report (a “transfer report”) unless—

(a) they have already requested a report under paragraph (1) and that report has not been completed; or

(b) they already have a transfer report for the scheme which remains current.

(3) A transfer report for a scheme remains current if—

(a) it still has an effective date which is no earlier than the effective date of the most recent report of an actuarial valuation of the scheme;

(b) the determinations used by the actuary (under paragraph 4(2) of the Schedule) who prepared the report are still the most recent determinations for the scheme as a whole made by the trustees or managers of that scheme under regulation 7A(3) (manner of calculation of initial cash equivalents for salary related benefits) of the 1996 Regulations; and

(c) the assumptions used by the actuary (under paragraph 5(2) of the Schedule) who prepared the report are still the assumptions for the scheme as a whole most recently determined by the trustees or managers of that scheme under regulation 7B (initial cash equivalents for salary related benefits: assumptions and guidance) of the 1996 Regulations.

(4) Where the trustees or managers make a request under paragraph (2), they must make the request within three working days of—

(a) the scheme’s being designated or the designation of the scheme being extended, in a case where the trustees or managers are the relevant person; or

(b) the trustees or managers receiving notice of a designation of the scheme or its extension, in a case where the trustees or managers are not the relevant person.

(5) Where an actuary has been requested to prepare a transfer report and—

(a) the request was made under paragraph (1), and the scheme is subsequently designated or the designation of the scheme is subsequently extended; or

(b) the request was made under paragraph (2) following a designation or extension of a designation of the scheme,

the actuary must complete the transfer report within two months of the designation or extension.

(6) The Schedule (transfer report) has effect.

(1)

Sections 94(1) and (2) were substituted by the Pension Schemes Act 2015 c. 8, section 67, Schedule 4, paragraph 8.