Enhanced Transfer Values

Episode Description

All non-pensioner members who leave active service have the right to transfer their deferred pension out of a defined benefit scheme. These members can be offered an incentive to transfer their benefits out of the scheme, either as an enhancement to their transfer value or a cash lump sum via an enhanced transfer value (ETV) exercise. An ETV exercise can be an extremely cost effective way of reducing the risks and liabilities of a pension scheme. The exercise must, however, be run properly with clear communications and the provision of independent financial advice for members. This video looks at these exercises and why they have been a popular tool with employers looking to reduce the risks associated with their defined benefit pension scheme.