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Using the actuarial equivalence route - Transcript

Flowchart 3: Using the actuarial equivalence route

This is a transcript of the flowchart intended as supporting material for: Code 10 Modification of subsisting rights.

From trustee activities: decision to use actuarial equivalence route – go to 1

1. Trustee to seek actuarial confirmation that actuarial value of member’s subsisting rights will be maintained (Ref: Para. 63) – go to 2

2. Actuary to provide confirmation that the actuarial value of member’s subsisting rights will be maintained (Ref: Para. 63) – go to 3

3. Trustee to explain modification to member (Ref: Para. 50 and 51). Member requests representation – go to 4

4. Trustee to consider member representations and determine what action to take (Ref: Para. 55 to 57)

If required, modify proposal, if modification material – return to 3

If required, modify proposal, if modification not material – go to 5 

If decision re: representation – go to 5

5. Trustee to determine whether to proceed with proposed modification and notify member within reasonable period of decision and before modification takes effect (Ref: Para. 70 to 73)

If decision to proceed – go to 6

6. Scheme administration to implement modification within reasonable period (Ref: Para. 68)

7. Trustee to obtain actuarial equivalence statement within reasonable period of modification taking effect (Ref: Para. 64)