SCHEDULE 5CONTINUITY OPTION 1: TRANSFER OUT AND WINDING UP

Calculation of cash equivalent

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1

In this Schedule, a “cash equivalent” of any rights and benefits to which a member is entitled is the realisable value of those rights and benefits.

2

A cash equivalent must be calculated—

a

in accordance with these Regulations and with the rules of the scheme to which it relates;

b

in a manner which is approved by the trustees;

c

as an estimate as at the date when the employers are informed of the transfer date under paragraph 9; and

d

as a final figure as at the transfer date.

3

In calculating a cash equivalent, account must be taken of any surrender, commutation or forfeiture of the whole or part of a member’s pension.