APTA and TVC

Question 1

What is Appropriate Pension Transfer Advice process?

Answer 1

Must be made prior to personal recommendation

It can include behavioural and non financial analysis

CYC can be used if valid

NEW

• impact on clients tax position
• access to State Benefits
• trade offs in broader terms
• reasonable period beyond life expectancy

Question 2

How is the Transfer Value Comparator calculated?

Answer 2

STEP 1

Revalue from DOL to Selected Pension Age

STEP 2

Calculate capital cost to purchase a lifetime annuity based on scheme benefits

STEP 3

Discount capital cost back to date of calculation - using gilt returns

STEP 4

Calculate difference between discounted value and CETV on offer