F1Manner of calculation and verification of cash equivalents: occupational pension schemes4
1
Subject to this regulation, where a person with pension rights is, for the purposes of Part I of the 1995 Act, an active member, a deferred member or a pensioner member of an occupational pension scheme, or where a person with pension rights attains, or is over, normal pension age and is not in receipt of the pension, the value of rights in relation to a category of benefits referred to in section 93(6) of the 1993 Act (category of benefits) must be calculated and verified in accordance with regulations 7 to 7C and 7E(1) to (3) of the Transfer Values Regulations (calculation and verification of cash equivalents), as if—
a
in the case of benefits other than money purchase benefits, the member has made an application for a statement of entitlement under section 93A of the 1993 Act (right to statement of entitlement: benefits other than money purchase); or
b
in the case of money purchase benefits, the member has made an application under section 95 of the 1993 Act (ways of taking right to cash equivalent) to use the cash equivalent of those benefits.
2
Where a person with pension rights is continuing to accrue rights to benefits in the category of benefits to be valued, paragraph (1) applies as if the person had ceased to accrue rights in that category of benefits on the valuation day.
3
Where a person with pension rights is entitled to present payment of the pension, but the pension is not yet in payment, the cash equivalent must be calculated and verified on the assumption that the pension comes into payment on the transfer day.
4
When calculating and verifying the cash equivalent, regulations 7 to 7C and 7E(1) to (3) of the Transfer Values Regulations are to be read as if—
a
in regulation 7—
i
in paragraph (1)(a), the words “and then making any reductions in accordance with regulation 7D” do not appear;
ii
in paragraph (1)(b), the words “regulation 7E” are replaced with “regulation 7E(1) to (3)”;
b
in regulation 7A(2), the words “guarantee date” are replaced with “valuation day”;
c
in regulation 7C(2), the words “at the date of calculation” are replaced with “on the valuation day”; and
d
“valuation day” has the meaning given by section 29(7) of the 1999 Act (meaning of valuation day).