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Welcome to our Enhanced Transfer Value (ETV) information site
On this site you’ll find information to help you make an informed decision about your ETV offer, as well as more information about your retirement considerations. If you would like to receive more information about this offer and how it relates to you, please go to the Expression of Interest page to arrange an appointment with a Financial Adviser from Willis Towers Watson Life & Pensions Ltd.
What is a Standard Transfer Value?
There is a statutory basis for calculating the minimum or standard transfer value payable in lieu of a deferred pension entitlement from a defined benefit scheme. The assumptions that are used are set out by the Pensions Authority.
There may be a reduction in the standard transfer value payable depending on the solvency level of the individual scheme.
Other schemes which are well funded may offer scheme transfer values in excess of the statutory minimum standard transfer value.
What is an Enhanced Transfer Value?
In some cases transfer values may be offered – for a limited time period only - on a more generous or ‘enhanced’ basis in comparison to the normal scheme transfer value, e.g. 120% of the scheme transfer value.
Enhanced transfer values (ETV) exercises are typically run by the sponsors of defined benefit schemes who want to employ this approach as a risk management tool with which to reduce long term liabilities and costs. The scheme would no longer have an obligation to pay out future pensions to deferred members electing to take the ETV offered.
ETV exercises have significantly increased in popularity among DB scheme sponsors over the last few years as lower corporate bond yields have resulted in a dramatic increase in the cost of defined pension schemes reflected in the sponsors’ financial statements.
Why is your former employer making this option available?
There are two main reasons why this option is being offered:
1. For members, the option provides greater choice and flexibility compared with the options available if you were to remain in the pension scheme.
2. For the sponsor, where some members decide to take up the option, there will be less risk in relation to the provision of future pensions to deferred members, as well as a reduction in the liabilities shown on the company Balance Sheet.
