The Occupational Pension Schemes (Transfer Values) Regulations 1996

• (c) in accordance with the scheme rules, to the extent that they are consistent with sub-paragraphs (a) and (b).

• (2) Having taken the advice of the actuary, the trustees must—

• (a) determine the economic, financial and demographic assumptions; and

• (b) calculate the initial cash equivalent by using the assumptions so determined.

• (3) In determining the demographic assumptions, the trustees must have regard to—

• (a) the main characteristics of the members of the scheme; or

• (b) where the members of the scheme do not form a large enough group to allow demographic assumptions to be made, the characteristics of a wider population sharing similar characteristics to the members.

• (4) The trustees must have regard to the scheme’s investment strategy when deciding what assumptions will be included in calculating the discount rates in respect of the member.

• (5) The trustees must determine the assumptions under this regulation with the aim that, taken as a whole, they should lead to the best estimate of the initial cash equivalent.

• (6) In this regulation, “the available assets of the collective money purchase scheme” has the meaning given by section 2(2) of the Pension Schemes Act 2021 “the available assets of the scheme”.

Reductions to initial cash equivalents

Alternative manner of calculating and verifying cash equivalents

Increases and reductions of cash equivalents shown in the statement of entitlement

Increases of cash equivalents on late payment

Disclosure

4

Where information is made available under this Schedule to a member of a collective money purchase scheme, the information to be made available to such a member also includes—

• (a) a statement that the Money and Pensions Service provides information about transfers that may assist the member in deciding whether to transfer;

• (b) an explanation of any potential adverse consequences for the member of transferring before normal pension age;

• (c) an explanation of the trustees’ duties under section 99A of the 1993 Act (trustees’ further duties: collective money purchase benefits);

• (d) an explanation that the member will not be able to transfer in the event of the scheme pursuing continuity option 1 within the meaning of sections 34 and 36 of the Pension Schemes Act 2021.