A recent article in UK New Model Adviser, reveals increasing pressure from both the FCA (Financial Conduct Authority) and TPR (The Pensions Regulator) upon Actuarial departments within UK Defined Benefit (Final Salary) schemes to consider further reductions in their current CETVs (Cash Equivalent Transfer Values), in order to protect the members remaining in the scheme and the schemes’ ability to pay out those future liabilities.
This added pressure comes at a time when many UK DB schemes have already begun to reduce their CETVs, most notably the BP Pension Scheme, which announced a 20% drop in their CETVs, effective from 1 February 2018. This announcement came as a shock to many BP Pension policyholders and had a ripple effect throughout the industry, as other DB schemes began to follow suit.
To read the full article, click on the Model Adviser link above.
If you currently have a UK Defined Benefit Scheme, please contact Sterling Planners on 1300 132 737 to discuss your available options.
There are options available for people aged under 55 yrs and over 55 yrs.