FSA proposes changes to pension transfer value calculation

It estimates the changes will prevent an undervaluation of benefits of up to £20bn. The proposals came after pensions minister Steve Webb vowed last May to protect pension scheme members from poor advice when they are offered incentives to transfer from defined benefit (DB) to defined contribution (DC) pensions. The FSA proposes: • to update the rules for calculating mortality to be aligned with those used by the Board for Actuarial Standards, and therefore making them consistent with annual pension statements that all personal pension holders receive once a year; • to calculate ...