The Actuarial Profession is planning to change the way pension transfer values are calculated. Currently, individual transfer values represent the expected cost to the pension scheme of providing the benefits, which the member is giving up. The planned change will make the cost of employer's legal duty to back up their pension promise clearer, or where the employer is insolvent, the cost to the Pension Protection Fund.
Our view
Anything that makes pension values easier to understand and work how actuaries got to their figure has got be good.