7.4 Transfer Values
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Transfer values from unit linked policies will generally reflect
the bid value of the fund, although there may be additional penalties
in the early years. There must be no penalty for transferring a
stakeholder pension.
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Transfer values from group occupational schemes will represent
the equivalent fund value of accrued benefit in a final salary scheme,
rather than the value of contributions paid into the fund. Essentially,
the actuary recommends a sum which will grow, given assumed conditions,
into enough cash to purchase the benefit built up in the scheme
to the date of leaving. This may or may not equate with any valuation
made by the accepting scheme as to how much benefit it will buy.
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Because of all the variables, it is a complex subject, and will
need to go through a proper analysis to help determine whether the
transfer is acceptable, and whether what it can buy is good value
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