The Pensions Regulator has finalised its transfer values guidance for the trustees of defined benefit schemes. Changes to the regulations governing the provision of cash-equivalent transfer values (CETVs) came into effect on 1 October 2008 (see Legal update, Transfer values: amending regulations and consultation response published). Under the new regime, trustees have sole responsibility for setting the assumptions used in the calculation of CETVs, and must choose these on a "best estimate" basis.

The Regulator issued draft trustee guidance for consultation in August 2008 (see Legal update, Pensions Regulator consults on transfer values guidance for trustees) and plans to publish its formal consultation response in the next few weeks. We will report on this in full in due course. On the whole, most of the amendments to the consultation draft are fairly minor, with certain parts expanded or removed. Deletions include the removal of the suggestion that actuarial assumptions used to calculate a scheme's technical provisions should be determined at the same time as CETV assumptions, and that the two sets should be "capable of rational reconciliation" (see paragraph 23).

See Transfer values: guidance to the trustees of private-sector occupational pension schemes providing defined benefits, Pensions Regulator, 29 September 2008.