Transfer Value Analysis Systems & Services

CTC pioneered the use of transfer analysis for calculating scheme benefits and comparing alternative products. Now fully updated with enhancements including TVC and drawdown yields.

For Trustees and Scheme Sponsors
Equally for Defined Benefit and Defined Contribution schemes, it is incumbent upon trustees to make members fully aware of all their retirement options. DB and DC members will have different considerations in the benefits they are giving up and, although not right for everyone, some DB members may be genuinely better off transferring. Once a member retires in a DB scheme all other options cease to be available so it is critical that they explore this before they start taking benefits.
For Insurers & Product Providers
Firms who administer corporate schemes are expected to provide services to help members understand their pension savings. Where firms offer receiving products for transfers, they want to ensure their products are appropriately represented and they take business that meets their risk parameters. Additionally firms that insure Defined Benefits have a responsibility to make members aware of their options (including deferred annuitants); this might well result in the release of capital from those that transfer.
For Advisers to Members
Advisers may have individual clients with company scheme benefits to consider or they may be appointed by a scheme to offer advice to members. Particularly for transfers out of DB schemes, the process is highly regulated and Transfer Value Analysis cannot be considered in isolation. Given the thousands of members exploring pension freedoms there isn’t enough adviser capacity in the market. This calls for a different approach that is less demanding on an adviser’s time and is more efficient end to end.
For Advisers to Schemes/Sponsors
A significant challenge for advisers lies in helping trustees and sponsors to understand the breadth of options available to members as a result of Pension Freedoms and how to convey them. As ‘value for money’ becomes increasingly important, advisers have a critical role in translating member options into impacts on the scheme. Consultancy and advice in this area requires the support of powerful tools which can bring the issues to life.

The 2018 regulation for DB transfers significantly changed and extended the requirements and the analysis needed to support the process when providing advice on such business. CTC provide fully compliant reports, available through software or via the Bureau, with additional features to help the compliance and process demands of advisory firms.

Supporting the advice process from start to finish; based on FCA compliant charges & growth returns consistent with KFIs.

Unrivalled Pedigree

CTC built the first TVAS system and delivered it to the market in 1990.  By 1992 there were in excess of 50 Provider firms using the software.  We have continued to provide systems and associated services to support individual transfers and bulk transfer exercises ever since. CTC were in the forefront in terms of introducing Drawdown critical yields and fund depletion calculations into our analysis calculations and outputting the results because, since the introduction of Pension Freedom, drawdown is the most flexible and favoured option by end customers rather than annuity purchase.

Extensive Expertise

The accuracy of results from the CTC Bureau Service is assured as the Transfer Value Analysis is undertaken by actuaries, these experts ensure both the quality of the results and that SLAs are met in 98% of cases. Staff at CTC have an average of over 15 years Pensions Technical knowledge and include leading industry experts, for example CTCs Chairman, Nigel Chambers FIA, regularly speaks at industry conferences on this subject and is often quoted in the industry press. CTC offers a full service to schemes to generate transfer analysis reports in bulk for members; this can be a one-off exercise, or as part of an on-going service addressing, for example, specific age groups within the scheme. CTC can liaise directly with the scheme administrator to upload member detail (in bulk), validate data and produce TVA reports and scheme analysis.  Additionally, reports can be rerun on a different calculation basis.

Market Leading Software

Compliance is assured - CTC's Bureau Service is based on the market leading CTC Elements software. The comprehensive, actuarial based calculations engine has been providing solutions to the Financial Services market for over 25 years. Functionality from the wider software suite is available through TVC/TVAS reports, including a range of cashflow capabilities. CTC can accommodate a full range of API call/response links to allow integration with adviser systems/platforms to support the preparation of ‘Suitability’/APTA reports.

Used by Top Industry Firms

CTC is committed to continually developing the software as the market reacts to ever-changing regulatory requirements. CTC provides services for a wide range of advisory clients – including some of the very largest. The system is set up for providers with their specific products and calculation basis, and can be linked into their other enterprise systems.  The transfer analysis report (fulfilling regulatory requirements) can be tailored for providers as part of their overall service to advisers.

Member Analysis

As part of the bulk transfer value analysis process, CTC can provide a full extract of the member details and results into a CSV format. This can be used in ETV and other similar exercises where it is helpful to chart and tabulate results across the scheme.

Re-engineered TVAS Reports

TVAS/TVC
Standard Report

  • Transfer Value Comparator
  • Annuity purchase Critical Yields (normal and early retirement ages)
  • TVC type capitalised values alongside Critical Yields for Early Retirement and Pension Protection Fund
  • Drawdown cashflows to match Scheme Pension
  • Expectation of Life based on ONS tables

TVAS/TVC
Online Access

  • Allows user to amend various data items and rerun cases without reference to CTC
  • Amount of Transfer Value
  • Replacement product, growth rates and charges
  • Spouse date of birth
  • Early Retirement date and reduction factors
  • Lifetime Allowance calculations for Maximum Tax-Free Cash Protection

TVAS/TVC
+

  • Drawdown cash flow tables based on customer’s desired income flow
  • Drawdown Critical Yields with the addition of TVC type capitalised values to various fund depletion ages
  • Option toggle to produce TVAS+ report in Nominal or Real terms (based on FCA COBS discount rate in force from time to time - i.e. 2% pa from April 2019)

Interested? We'd love to hear from you.

  • 0800 689 4739
  • enquiries@ctc.uk.com
  • Sunley House
    4 Bedford Park
    Croydon
    CR0 2AP

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