PART IIIF2 ... STATEMENTS OF ENTITLEMENT AND CALCULATION OF TRANSFER VALUES

Annotations:
Amendments (Textual)

F3Manner of calculation of initial cash equivalents for salary related benefits F4other than cash balance benefits not calculated by reference to final salaryC1C2C47A

1

For salary related benefits F1other than cash balance benefits in respect of which the available sum is not calculated by reference to final salary, the initial cash equivalent is to be calculated—

a

on an actuarial basis; and

b

in accordance with paragraph (2) and regulation 7B.

2

C3C5 The initial cash equivalent is the amount at the guarantee date which is required to make provision within the scheme for a member’s accrued benefits, options and discretionary benefits.

3

For the purposes of paragraph (2), the trustees must determine the extent—

a

of any options the member has which would increase the value of his benefits under the scheme;

b

of any adjustments they decide to make to reflect the proportion of members likely to exercise those options; and

c

to which any discretionary benefits should be taken into account, having regard to any established custom for awarding them and any requirement for consent before they are awarded.