Exception to section 48(1)5

1

The trustees or managers are not required to carry out the check in section 48(1) of the Act4 if the transfer value of the member’s or survivor’s subsisting rights in respect of safeguarded benefits5 under the pension scheme is £30,000 or less on the valuation date.

2

In this regulation “transfer value” means—

a

where the rights referred to in paragraph (1) are transferrable rights as defined in section 93(11) of the 1993 Act (scope of Chapter 1)6, the amount of the cash equivalent of those rights calculated in accordance with section 97 of that Act (calculation of cash equivalents)7 and regulations made under it;

b

where the rights referred to in paragraph (1) are pension credit rights, the amount of the cash equivalent of those rights calculated in accordance with regulations made under section 101I of the 1993 Act (pension credit rights: calculation of cash equivalents)8;

c

in any other case, the amount which would be the cash equivalent of the rights referred to in paragraph (1), calculated in accordance with section 97 of the 1993 Act and regulations made under it, as if—

i

Chapter 1 of Part 4ZA of the 1993 Act (transfer rights: general) applied to the member or survivor by virtue of those rights;

ii

references to a member in that Chapter and regulations made under it included a survivor of a member; and

iii

in the case of an active member, the member had ceased to accrue rights to benefits on the valuation date,

but, in each case, disregarding regulations 7D (reductions to initial cash equivalents) and 7E (alternative manner of calculating and verifying cash equivalents) of the Transfer Values Regulations9.