Help Understanding DB Transfer Value - Reduced ?

Seabee42

The only way a scheme with no sponsoring employer improving its funding level will be either down to improved investments or a reduction in liabilities (This can be down to market movement in gilt yields for instance). The sponsoring employer would normally be expected to pay money into the plan to improve the funding level if it was in deficit.



Most pension plans will have a wind up clause if the principle employer was for instance insolvent.


Pension Plans also have costs of being run as well.


The trustees have quoted both the normal transfer value and the reduced transfer value as they have a duty to inform the members of the reduction where they have reduced a transfer value to be fair to all members.