Is there any need to check the Cash Equivalent Transfer Valuation (CETV) provided in relation to a pension?
The CETV is the present lump sum value of the rights accruing under a pension scheme as measured by the amount which would be available in the event of a transfer being made to an alternative pension providere. There are a number of reasons why it may be necessary to check that the figure provided is accurate and these include: • In certain UK public sector schemes, to including the police, fire brigade, armed forces, prison service and some NHS staff an independent valuation ought to be considered because under these schemes the benefits payable to an early leaver are of substantially less value than the benefits payable to a member who continues through to retirement. The Regulations require the CETV to be calculated on the assumption that the member has already left and so there may be a significant under-valuation of these benefits. • In private sector pension schemes if a company scheme does not have sufficient assets at the time of a valuation to cover the value of its liabilitie
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