On 18 January, Minister for Pensions, James Purnell, announced the Government’s response to last year’s consultation into the approach that it plans to adopt on the calculation of pension transfer values. Under the current arrangements, responsibility for the calculation of pension transfer values is largely delegated to actuaries. Under the proposed legislation, transfer values will be based on the expected cost to the scheme of providing the relevant pension benefits.
The Government has said that it will publish draft regulations for consultation in early 2007 with the new regulations planned to come into force on 6 April 2008.
The Government press release announcing the publication of the response document (dated 18 January) is available at http://www.dwp.gov.uk/mediacentre/pressreleases/2007/jan/
The response document itself can be accessed from http://www.dwp.gov.uk/consultations/2006