The Member Options Working Party was set up by the Current Issues Committee of the Pensions Board in 2006 to review issues arising from actuarial advice in connection with setting terms for cash commutation and other member options. The Working Party has now concluded its work and its report, containing a number of recommendations, has been accepted by the Board.

The Board has written to all Home Members highlighting issues which they may wish to consider to ensure their own advice is up-to-date and suggesting that they may also wish to clarify with their clients their obligations to advise in this area. An open letter has been sent to the DWP and the Pensions Regulator calling for the introduction of a risk warning or increased disclosure for cash commutation to help ensure that scheme members have a clear idea of the value of the benefits they are giving up when they commute pension for cash at retirement.

Report [pdf]
This report covers actuarial advice on the options that can be exercised by individual members of occupational defined benefit pension schemes for cash or for different scheme benefits.

Letter to home members [pdf]
From the Chairman of the Pensions Board

Open letter [pdf]
To the Pensions Regulator and the Department for Work and Pensions