RECAL – Pension Switching Redress

RECAL-PSR has been designed to calculate whether an investor has suffered, or is likely to suffer, a financial loss as a consequence of being advised to switch from one defined contribution pension arrangement to another. It allows the user to model two courses of action, compare the results and determine whether the investor is likely to suffer a loss. If so, an appropriate level of redress to be paid in compensation can be identified. The modelling can account for case features such as:

• The investor’s marginal tax rate
• Scheme Protected PCLS
• Enhanced Annuity Rates
• Policy Guarantees
• With Profits Investments
• A history of drawdown, phased retirement and more

The combination of our actuarial rigour, experience and the use of leading modern software technology will facilitate completion of reviews in a consistently fair, timely, carefully considered and compliant manner. The flexibility built into the solution allows for the selection of the most appropriate basis for the calculation of redress and reconstruct / project polices from their last known value and in doing so allowing for:

• contributions
• benefits
• charges
• performance
• special features

Scheme and product library facilities are provided so that schemes and products records can be saved and used for multiple assessments. Cases can be saved and rerun at a later date with updated pension values or any other parameter.

PAS works to keep its software compliant with governing UK legislation and provides regular assumption updates to manage this process.

PAS can also provide a service that runs calculations using our software for providers who don’t wish to maintain such expertise in-house and are happy to outsource this capability to a trusted supplier.