Will new pensions rule be a minor tremor or a major earthquake?

pensions

If cash transfer values are subject to a minimum calculated on a marked to market basis as opposed to the expected cost, those involved with a DB transfer should wait to see if the value will go up if delayed

Actuarial Guidance note GN11 governs the calculation of cash equivalent transfer values for defined benefit schemes. In May 2005 the actuarial profession published a consultation paper, Exposure Draft 54 (EXD54), about changing GN11. This paper looks at EXD54 and the profound implications for UK pensions if it becomes a new GN11 in something like its current form. A transfer value is the capitalisation today of a stream of pension income payable over a future period of time. The existing GN11 allows pension scheme actuaries wide discretion in the way they calculate transfer values from d...