My honourable friend the Minister of State for Pensions Reform (Mike O’Brien) has made the following Statement.
New regulations on the calculation of pensions transfer values were laid on 11 April. The regulations come into effect on 1 October 2008.
The regulations build on the very useful dialogue that we have had with the pensions community about the way in which pensions transfer values should be calculated.
The regulations are largely as we consulted on. However, the requirement that every assumption used in the calculation should be a “best estimate” has been changed in order to make the calculation more straightforward. The new requirement is that the assumptions, taken as a whole, should lead to a “best estimate” of the amount of the unreduced transfer value.