Part IV Protection for Early Leavers
C1Chapter IV Transfer Values
93 Calculation of cash equivalents.
1
Cash equivalents are to be calculated and verified in the prescribed manner.
2
Regulations may provide—
a
that in calculating cash equivalents F1except guaranteed cash equivalents (as defined in section 90 (1A)) account shall be taken—
i
of any surrender, commutation or forfeiture of the whole or part of a member’s pension which occurs before the trustees or managers of the scheme of which he is a member do what is needed to comply with what he requires under section 91;
ii
in a case where subsection (2) of section 92 applies, of the need to deduct an appropriate amount to provide for the liabilities mentioned in subsection (3) of that section; and
b
that in prescribed circumstances a cash equivalent shall be increased or reduced.
3
Without prejudice to the generality of subsection (2), the circumstances that may be specified by virtue of paragraph (b) of that subsection include—
a
in the case of an occupational pension scheme, the length of time which elapses between the termination of a member’s pensionable service and his exercise of the option conferred by this Chapter or regulations made under it;
b
failure by the trustees or managers of the scheme to do what is needed to carry out what a member of the scheme requires within 6 months of F2the appropriate date
c
the state of the funding of the scheme.
F33A
For the purposes of subsection (3), the “appropriate date” —
a
in the case of a salary related occupational pension scheme, is the guarantee date (within the meaning of section 89A), and
b
in any other case, is the date on which the trustees receive an application from the member under section 91.
4
Regulations under subsection (2) may specify as the amount by which a cash equivalent is to be reduced such an amount that a member has no right to receive anything.
Pt. 4 Ch. 4 applied (31.5.1994) by S.I. 1994/1432, art. 6(4)