UK – The UK pensions regulator the Occupational Pensions Regulatory Authority says it has decided to temporarily relax its policy on the calculation of cash equivalent transfer values.

It says it will not sanction trustees who delay the issue of statements of entitlement to members of salary-related schemes where they consider that payment of a transfer value calculated in accordance with existing requirements would hit remaining members.

“This is a temporary relaxation of Opra policy pending legislative changes relating to the calculation of transfer values,” Opra said

The move has been prompted by some trustees and scheme advisors who were concerned that payment of a transfer value calculated in line with current legislation may prejudice the interests of remaining members, Opra said.

“Opra's new guidance sets out the circumstances in which the regulator may allow trustees more time in which to provide a written statement of entitlement to members requesting a transfer.”

The guidance is the first of a new series of brief publications designed to address topical issues for trustees and their advisers. It said it conferred with the Department for Work and Pensions on the guidance.


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