The following questions have arisen as a result of the Plan leaving PPF assessment and member benefits having been secured in a number of different ways
- QB-1 Why has my Transfer Value changed?
- The Trustee was able to secure terms with L&G in September 2018 that were more favourable than those available in either the December 2017 or subsequent estimates. In other words, the amount needed to buy a particular pension was lower. This resulted in improved pensions being secured for many members, as the reduction in cost was redistributed to those who suffered PPF cutbacks. As you will have seen in your ‘discharge’ letter, we are now covering 34% of cutbacks rather than the 24% that was used in the March Option letter.
However, as the transfer value equals the estimated cost of buying the alternative pension, final transfer values were typically lower than those estimated in May 2018. This is because for members taking transfer values the fall in buyout cost was not fully offset by the redistribution.
Please also take a look at our original FAQ 9-13 which can be found in the Archive FAQ section of our website.