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27.—(1) For the purposes of Condition 1 of section 24B of the 1993 Act(1) (the conversion conditions), actuarial equivalence is to be determined in accordance with this regulation.
(2) The trustees are responsible for determining actuarial equivalence.
(3) In determining actuarial equivalence, the trustees must—
(a)obtain advice from the actuary appointed for the scheme in accordance with section 47(1)(b) of the 1995 Act (“the actuary”) about what assumptions are appropriate at the conversion date;
(b)consider that advice;
(c)decide what assumptions are appropriate at the conversion date and, if the trustees later think it is necessary, change that decision; and
(d)arrange for the actuary to calculate the actuarial values of the post-conversion benefits and the pre-conversion benefits in accordance with paragraph (4).
(4) In calculating the actuarial values mentioned in paragraph (3)(d), the actuary must—
(a)use the assumptions chosen by the trustees under paragraph (3)(c); and
(b)ignore the value of any—
(i)benefits that have been commuted;
(ii)amounts that have been paid in respect of any benefits;
(iii)amounts in respect of any benefits that, before the conversion date, became due to be paid; and
(iv)discretionary benefits that might be awarded in the future.
(5) When the actuarial values mentioned in paragraph (3)(d) have been calculated, the actuary must send the trustees a certificate if the post-conversion benefits are actuarially at least equivalent to the pre-conversion benefits.
(6) The certificate is to—
(a)state that—
(i)the calculations have been completed; and
(ii)the post-conversion benefits are actuarially at least equivalent to the pre-conversion benefits; and
(b)be sent to the trustees no later than three months after the calculations have been completed.
Section 24B was inserted by section 14 of the Pensions Act 2007.
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