Part IVProtection for Early Leavers

IVTransfer Values

93Calculation 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 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 the date on which they receive an application from him under section 91; and

c

the state of the funding of the scheme.

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.