Cash equivalent value: Difference between revisions
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(CEV). | (CEV). | ||
A lump sum in present day terms of the accrued rights of a member within a pension scheme. It assumes that the member is leaving service and makes a transfer to an alternative pension arrangement. | A lump sum in present day terms of the accrued rights of a member within a pension scheme. | ||
It assumes that the member is leaving service and makes a transfer to an alternative pension arrangement. | |||
The basis for the calculation of a CEV may be set out in the Trust deed, but even then may give Trustees discretion with respect to the valuation of discretionary benefits, which are often not taken into account. | The basis for the calculation of a CEV may be set out in the Trust deed, but even then may give Trustees discretion with respect to the valuation of discretionary benefits, which are often not taken into account. | ||
Generally the Scheme Actuary, or some other appointed actuary, will have considerable freedom in the actuarial assumptions used in calculating CEVs. | Generally the Scheme Actuary, or some other appointed actuary, will have considerable freedom in the actuarial assumptions used in calculating CEVs. | ||
Also known as a cash equivalent ''transfer'' value. | |||
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* [[Transfer value]] | * [[Transfer value]] | ||
* [[Trust deed]] | * [[Trust deed]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
Latest revision as of 22:20, 10 March 2019
Pensions.
(CEV).
A lump sum in present day terms of the accrued rights of a member within a pension scheme.
It assumes that the member is leaving service and makes a transfer to an alternative pension arrangement.
The basis for the calculation of a CEV may be set out in the Trust deed, but even then may give Trustees discretion with respect to the valuation of discretionary benefits, which are often not taken into account.
Generally the Scheme Actuary, or some other appointed actuary, will have considerable freedom in the actuarial assumptions used in calculating CEVs.
Also known as a cash equivalent transfer value.
