Benefits of Enhanced Transfer Values
There are of course some key steps to consider when making decisions around ETV exercises, especially in relation to Treating Customers Fairly. However, if managed well, ETVs can provide benefits to all parties.
|
Members |
Employers |
Trustees |
|
Choice and Control
Members can benefit from the control of managing their own future pension provision, with increased choice over:
- How and where their funds are invested
- When they take their benefits
- What type of annuity they take (including any guarantees, increases or dependant's benefits)
|
Reduced costs
Employers can benefit from a reduction in the long-term cost and associated risks of running their pension Scheme.
While ETV exercises require initial capital outlay, the cost of enhancing transfer values can be below the actual cost of providing a defined benefit and often well below the cost for a buyout. |
Risk reduction
Trustees can benefit from a reduction in the scheme's liabilities and funding requirements, while also helping to provide scheme members with the tools to make an informed personal choice about their future. |
< Previous page Next page>
