The UK government is to legislate on the calculation of transfer values for defined benefit occupational pension schemes – taking oversight away from the actuarial profession.
The move follows what pensions minister Stephen Timms called a “significant difference of view” with the profession about the way forward on the matter.
“We have now agreed with the profession that the time is right for the government to set out the principles in legislation that should underpin the calculation of transfer values,” Timms said in a statement. The government will consult on draft regulations shortly.
Wendy Beaver, chairman of the Actuarial Profession’s pensions board said it was “no longer appropriate” for the profession alone to define how minimum transfer values should be calculated, via its GN11 guidance note. Timms said that the profession was now just providing “technical assistance”.