Peter Doherty: How to de-risk a DB pension transfer

First, and critically, a defined benefit (DB) transfer is an irreversible transfer of risk from a pension scheme to an individual. The premium paid by the scheme to discharge its risk is the CETV, which stands for ‘cash equivalent transfer value'. For the individual, the CETV monies are "irreplaceable capital". There is no chance to get the money back if it is lost; there is not a second career or income stream to fill the hole. Game over. The headline number that tends to grab the attention is the CETV as a multiple of the starting annual benefit given up. A ‘CETV of 32 times' means tha...