Following the release of the FCA Policy Statement PS20/06 we are pleased to announce that FinCalc has been updated!
PS20/06 presented several changes to pension transfer advice and we at FinCalc are pleased to confirm that all of the relevant updates have been made to our Transvas with TVC module. These include:
Transfer Value Comparator Calculations
The product charge used within the calculation for the Transfer Value Comparator has been updated from 0.75% to 0.4% in line with the changes. We have also updated Transvas so that the calculation for a TVC within one year of Normal Retirement Age now only uses the FCA annuity rate and no longer compares this with an open market annuity rate as per the guidance. All applicable wording within the Pension Transfer Analysis Report has also been amended to reflect the changes.
Age to use for the TVC
We have updated Transvas so that Illustration Age A is no longer ‘locked’ to Normal Retirement Age. Following PS20/06 the FCA have confirmed that where early retirement is available without reduction, and no consent is required from trustee nor employer, then the TVC should be based on the earliest age at which such unreduced benefits are available rather than NRA. Therefore Illustration Age A is no longer ‘locked’ to the scheme NRA and can be amended accordingly for the TVC calculation.
Current level of pension income
The FCA have confirmed that all pension transfer advice suitability reports must contain a one page summary detailing the ‘current level of pension income’ from the ceding scheme shown as a monthly figure. We have therefore added an additional page at the beginning of the report to reflect this information.
Ability to build in Workplace Pensions
As part of our ongoing development we have released a new feature called Manage Products. This allows users to have greater control over the Pension Products used within the Transvas with TVC module. In line with the FCA policy statement PS20/6, FinCalc users now have the ability to add other products in addition to those we already have available. You can view all the system supplied products and copy these to build in your agreed discounts as well as adding in your own funds, such as DFMs. You can also create a new Product to replicate the charging structure of an existing Workplace Pension.
Manage Products is available on FinCalc FREE OF CHARGE and can be found within the Company Settings.
Look out for more news about new additions to our range of Financial Calculators and Enhanced Features exclusively on FinCalc that are coming very soon!