What is the purpose of a transfer value assessment?

• A. It estimates the lump sum value of the member's benefits to compare against the receiving scheme.
• B. It determines eligibility for tax relief.
• C. It sets the client’s pension retirement age.
• D. It calculates future contribution rates.

Answer: (A)

The transfer value assessment is about putting a value on what you’ve earned in your current pension so you can compare it with what you’d get in a new scheme. It works out the lump-sum value—often called a cash equivalent transfer value—of your accrued benefits as of a given date. That figure lets you judge whether moving to the receiving scheme is advantageous, by directly comparing the two values and the future benefits they would provide. It isn’t about tax relief eligibility, retirement age, or future contribution rates—they’re decided by different rules and factors, not the transfer value calculation.