Rise set for BD transfer values

The minimum transfer value of a defined benefit scheme will increase by 6.5% under the Institute of Actuaries' proposed changes to the MFR. This is due to the change in assumptions based on people living longer. As a result, the cost of providing each pension will go up and MFR liability will increase. Minimum transfer values are determined by the MFR basis. Equally, pension schemes that are currently 100% funded using today's MFR calculation, would fall to 95% if the Treasury's calculations are adopted. Stewart Ritchie, pensions director at Scottish Equitable, said the proposed calculat...