Standard calls for fairer transfer values

SL believes unachievable projected returns are biasing values against transferring members

Standard Life is calling for the Government to eliminate actuarial discretion in calculating transfer values out of defined benefit pension schemes, which it claims would lead to fairer results for employees. Head of pension policy at Standard Life John Lawson said transfer values are currently unfair because actuaries have the discretion to assume future investment returns that are unachievable under any realistic view and mortality rates more suited to post-war Britain. He believes the discount factors used should reflect underlying scheme assets but with fixed return assumptions and fi...