It’s essential to use a Defined Benefit transfer tool which helps to provide the technical analysis to aid the completion of your APTA.

The below table highlights some of the key points from the Policy Statement 18/6 – Advising on Pension Transfers and how Selectapension provides these requirements;

 

Policy Statement 18/6 requirements How Selectapension satisfies requirements
Consider the impact of tax and access to state benefits, particularly where there would be a financial impact from crossing a tax threshold/band.
  • Selectapension includes personal allowance tax bands for all UK jurisdictions.
  • Income can be shown Gross or Net to show the tax implications.
  • Lifetime Allowance is also included to demonstrate the tax charge if applicable within the ceding and receiving schemes.
  • Users are able to add State Pension to income amounts.
APTA must consider a reasonable period beyond average life expectancy, particularly where a longer period would better demonstrate the risk of the funds running out.
  • The report publishes the results past the target age or ONS age to demonstrate the longevity of the fund past their life expectancy. The tables are run to age 120.
Guidance on considering the safety nets – the PPF and Financial Services Compensation Scheme (FSCS) in the UK – that cover both the current and receiving schemes in a balanced and objective way.
  • Selectapension outputs include the estimated income from the PPF and produce a CY to provide this income from an annuity.
  • Long Service calculations are also applied within PPF.
Consideration of Death Benefits on a fair basis i.e. Showing capitilised benefits as a lump sum for both ceding and receiving schemes.
  • The DB Transfer report shows the comparison between the Death Benefits on a capitilised basis for the existing and receiving scheme.
Mandatory requirement of a TVC.
  • The TVC was added to our DB Transfer tool in July. The required pages follow the FCA’s prescribed requirements as well as COBS 19.1.3A.
  • Where clients have less than 12 months to retirement, our integration to Assureweb allows user to pull through live Annuity Quotes directly to provide the present value required.
Adding explicit requirements on the charges to be included in an APTA (including the TVC). These will include relevant product, platform and adviser charges.
  • Our DB Transfer tool holds up to date product information for over 60 providers, ensuring you will receive a full market comparison on a like for like basis. Fund charges and availability also ensure you are demonstrating the estimated cost your client will be paying in the receiving scheme.
  • Results can be shown with and without remuneration.
The role of the ceding and receiving scheme in meeting the income needs, in addition to any other means available to the client – effectively obtaining an understanding of the client’s potential cash flows.
  • Our DB Transfer Tool now includes Income Modeller. This allows users to incorporate other assets and guaranteed income sources the client may have in the analysis – a ‘Holistic’ approach.
  • Income Modelling is also a key feature in our Drawdown & Annuity module, Retirement Income Strategies.