Redress Calculations

In dealing with complaints advisor firms will need to calculate redress if a complaint is upheld.  Redress calculations for transfers from defined benefit schemes are complex as one is required to determine the difference between the value of the Defined Benefits (“DB”) given up and the current Defined Contribution (“DC”) pension arrangement excluding the effect of any additional contributions. 

Using our Congruent Calculations^TM calculation framework we are able to model scheme benefits taking into account the relevant risk factors and provide a detailed actuarial report including our proprietary DB & DC “Check My Calculation” (“CMC”) for the value of DB and DC pension benefits (see below).

An actuarial report may be required in settlement negotiations with the complainant (or their representative) or as a result of an Ombudsman direction or award.  In some cases, it may be a requirement of the respondent firm’s Professional Indemnity insurance to have a detailed actuarial report.

Our redress calculations for defined benefit transfers follows the current FCA methodology and has been extensively tested and is compliant to Technical Actuarial Standards (“TAS”). 

Our redress calculations experience covers Financial Ombudsman awards, court proceedings (expert witness) and FCA-mandated section 166 calculation reviews.  We also provide redress calculations in relation to Opt-out / Non-Joiner, Life interest and reversions and “DC to DC transfers”.  A separate note details the services we provide for capital resource requirements for portfolios of transfers.

DB Check My Calculation (“CMC”)

DC Check My Calculation (“CMC”)