Posted January 6th, 2012
Cash Equivalent Values (CEVs) from the public sector are currently on hold.
We received further information from the actuaries we use (Bradshaw Dixon Moore) on the subject which is worth sharing here – http://www.ancillaryactuary.co.uk/home/2011/12/29/public-sector-pensions-green-shoots.html
What was interesting was that they had quite rightly in my opinion taken the decision not to continue with estimated values for pending reports. Although, this inconvenienced clients and solicitors it was an important stance to take.
I received this response from Peter Moore at BDM when further questioned.
“Publication of the transfer club factors vindicated our stance. We understand that the mortality rate changes for some schemes are material and vary by age and gender. We believe that this provides a reasonable guide as to how the CEVs will change, scheme by scheme; but want to see the actual scheme factors and some new basis valuations before we can be certain.
One of the big issues from our perspective is professional actuarial integrity. If an actuary writes a report and cannot be certain that key numbers and results are reasonable and correct, there is a professional obligation to clearly state the position. Our view is that although such a report can be produced and be compliant from an actuarial perspective, we do not feel that such a report would be acceptable to a court that would wish to place reliance on it as expert guidance – ie Expert Witness Reports. From our perspective, we want our reports to all be fully compliant and avoid reports with too many caveats.”
So if you are involved in a divorce where an old or estimated CEV is being used I would be very cautious. If you would like to discuss this issue in more depth, why not get in touch for a free, no obligation chat on 0800 092 1229 or email us firstname.lastname@example.org