New transfer value basis for defined benefit schemes

The Pensions Authority today, 21 October 2016, published the basis on which transfer values should have been calculated since 21 September 2016. They have confirmed that the attached guidance was effective from the date the Minister approved the guidance. For practical purposes, a lead in time may need to be agreed so that actuarial systems can be altered. For non-increasing pensions, the basis is little changed close to a person’s normal retirement age but the values for younger members are increased – by approx 20% at age 30 for instance. The inflation assumption is reduced so the transfer values of pensions that increase in line with inflation will include a lower factor. prescribed_guidance_in_relation_to_section_34_of_the_pensions_act_1990_october_2016_