The standard report produced by Transvas Profiler and the Transfer Bureau runs to over 20 pages. Every report contains an analysis of the level of protection that would be provided in the event of the scheme requiring support from the Pension Protection Fund.

If you would like to view a sample report, please click here.

A summary of the some of the key issues detailed in the report are shown below. Own Charges Transfer analysis must be conducted using the actual charges of the company being considered. For flexibility, Transvas Profiler:

1. Contains a database of all the major Personal Pension & Section 32 contracts.
2. Allows the selection of different providers for Personal Pension & Section 32.
3. Links to a database of over 2,000 funds so you can split the investment between different sectors and be sure that the annual management charge used to calculate your results is accurate.
4. Will allow the variation of commission to allow users to select initial, fund based, partially rebated and fee based options.
5. Can incorporate bespoke products if required.

Bar Graphs

Are used to compare tax-free cash and residual pension amounts at normal and early retirement, this provides:

1. A simple means of explaining this issue to your client.
2. A clear picture to your client of his options.
3. An understanding of the reduction of pension that results in maximising tax free cash.

Line Graphs

Are the only effective way of showing how benefits increase during retirement as they illustrate:

1. The starting pension for each of the three options; Existing Scheme, Personal Pension and Section 32.
2. The effect that different escalation rates will have.

Death Benefits

Are illustrated:

1. At three ages which are; immediate death, death at the chosen early retirement age and death one day before normal retirement age.
2. By showing the lump sum values plus annual pension amounts.
3. Using a graph to show the capitalised value of death benefits. This combines any lump sum amount with the cost of buying the dependents pension.
4. Initially at the mid-rate of return but in greater detail if required using low, mid and higher assumptions as part of a dedicated death benefits report.

Assumptions

It is crucial that the assumptions are in accordance with the FSA regulations:

1. The Annuity Interest Rate is declared quarterly and updated by O&M.
2. All other assumptions are monitored and maintained by O&M to ensure your reports comply with the latest regulations.

Pension Protection Fund

A page dedicated to the Pensions Protection Fund provides:

1. An overview of how the PPF works.
2. A comparison of the benefits offered by the scheme and the PPF.
3. The critical yield to match pension benefits in both the scheme and the PPF.
4. The critical yield required assuming tax-free cash and a reduced pension is taken.

Tax Free Cash Sums

To assist with your recommendation, tax free cash from the existing scheme is considered at Low, Mid and High rates of return by illustrating:

1. The full pension amount.
2. The commutation rate.
3. The maximum tax free cash sum.
4. The reduced pension after cash has been taken.
5. Tax free cash at both normal and early retirement age.

Excess-Only Transfers

Occasionally product providers might not be willing to accept transfers into Section 32s in light of the cost of covering the GMP benefits. If the scheme is prepared to retain the GMP benefits, the report can show:

1. The critical yield for the excess benefits only.
2. Excess-only yields for both Personal Pension and Section 32.
3. Excess only yields at normal and early retirement age.

Data Used

The final few pages of the report are dedicated to the data used including:

1. A list of every input used to create the report.
2. The benefits being compared together with the assumptions used for revaluation and escalation.
3. Results in brackets to indicate that an assumption has had to be made where certain information was not available.
4. The history of discretionary increases for the existing scheme in both deferment and payment together with any increases resulting from catch-up.