View more on these topics

Final-salary plans show generosity on transfer values

Transferring out of final-salary pension schemes on valuations based on the minimum funding requirement leaves members short-changed but a growing number of schemes are paying more than they are legally bound, a survey shows.

Over half of big final-salary schemes are calculating transfer values in excess of the minimum required under the Pensions Act 1995, according to Hymans Robertson.

A further 23 per cent are considering increasing transfer values to reflect the downgrading in the MFR, the survey of 69 final-salary schemes of over £1m shows.

Schemes were also willing to receive transfers from other schemes, despite uncertainty over the future of the MFR and against a background of closure of many schemes to new entrants.

Actuarial head Ross Russell says: “This survey was designed to give an indication of how schemes are reacting to recent MFR changes. As a firm, we believe that the MFR basis is generally no longer appropriate for calculating individual transfer values to or from our clients&#39 schemes. Unless there are special circumstances, we have been advising our clients accordingly.”

Partner Crawford Taylor says: “Anyone wishing to transfer on the MFR basis from an occupational final-salary pension scheme has got to have a very good reason or be extremely optimistic about future returns from assets other than bonds.”


80% of advisers see single EU regulator in the next 10 years

Almost 80 per cent of IFAs believe there will be a single European Union financial services regulator within the next decade, according to August&#39s online survey by technology specialist 1st Software.Around 1,000 visitors to the 1st Software website responded to the 1st Impressions poll which was carried out to measure the opinions of firms on […]

Product matters

Scottish Equitable has closed its with-profits funds to new business and replaced it with two smoothed managed funds. It has somehow been given permission to call these funds the with-profits growth fund and the with-profits cautious fund, a move likely confuse potential investors.That said, while many funds have claimed to be an alternative to with-profits, […]

Network Data throws brokers a lifeline on loan exams

Mortgage group Network Data is throwing a lifeline to brokers who fail to pass their mortgage exams by the end-of-year deadline by taking full responsibility for their compliance and training.Network Data says the aim of the move is to prevent many brokers going out of business.The mortgage network is launching its trainee supervision scheme this […]

Bitter suite

Treasury reviewer-in-chief Ron Sandler&#39s vision of low-cost, easy-to-understand, lightly regulated products is to become a reality.The Treasury will issue its views imminently but if anyone wanted to question the commitment of the Government and the FSA to implement of the new regime, they need look no further than the Tiner report, which says the products […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm