cash equivalent

cash equivalent
A method which can be used to calculate a transfer payment from a salary-related pension scheme (salary-related scheme). A member of a final salary pension scheme (final salary scheme) who is not currently drawing a pension and who has more than 12 months to go before attaining the scheme's normal retirement age, has a statutory right to take a cash equivalent transfer value (CETV) to another registered pension scheme approved pension scheme or buy-out policy (section 93A, Pension Schemes Act 1993). The CETV must be calculated in accordance with the guidelines laid down in actuarial guidance note GN11 adopted by the Board for Actuarial Standards (and originally issued by the Pensions Board of the Faculty and the Institute of Actuaries).
+ A method which can be used to calculate a transfer payment from a salary-related pension scheme. A member of a final salary pension scheme who is not currently drawing a pension and who has more than 12 months to go before attaining the scheme's normal retirement age, has a statutory right to take a cash equivalent transfer value (CETV) (www.practicallaw.com/7-206-3997) to another registered pension scheme approved pension scheme or buy-out policy (section 93A, Pension Schemes Act 1993).
Until 1 October 2008, CETVs were calculated in accordance with the guidelines laid down in actuarial guidance note GN11 adopted by the Board for Actuarial Standards (and originally issued by the Pensions Board of the Faculty and the Institute of Actuaries). However, the legislation relating to CETVs changed on 1 October 2008. CETVs are now calculated by trustees, after obtaining actuarial advice, and GN11 is no longer in force. The Pensions Regulator has issued guidance on calculating transfer values.
USA
Highly liquid (liquidity), low-risk and low-return instruments or investments. Examples of cash equivalents include money market instruments, treasury bills, short-term government bonds, marketable securities and commercial paper. They mature within three months compared to short-term investments that mature in 12 months and long-term investments that mature in over 12 months. These are typically investments that are negotiated and permitted under a loan agreement.
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • Cash equivalent — A short term security that is sufficiently liquid that it may be considered the financial equivalent of cash. The New York Times Financial Glossary * * * cash equivalent cash equivalent ➔ equivalent * * *    An asset that is so easily and quickly …   Financial and business terms

  • cash equivalent transfer value — (CETV) A member of a salary related scheme who has more than 12 months to go before attaining the scheme s normal retirement age has a statutory right under the Pension Schemes Act 1993 to take a cash equivalent transfer value (CETV) to another… …   Law dictionary

  • cash equivalent doctrine — Generally, a cash basis taxpayer does not report income until cash is constructively or actually received. Under the cash equivalent doctrine, cash basis taxpayers are required to report income even though no cash is actually received in a… …   Black's law dictionary

  • cash equivalent doctrine — Generally, a cash basis taxpayer does not report income until cash is constructively or actually received. Under the cash equivalent doctrine, cash basis taxpayers are required to report income even though no cash is actually received in a… …   Black's law dictionary

  • Cash-equivalent items — Temporary investments of currently excess cash in short term, high quality investment media such as treasury bills and Banker s Acceptances. The New York Times Financial Glossary …   Financial and business terms

  • cash equivalent value — The amount of *cash that can be received in an *arm’s length transaction for the sale of an asset. See also *fair market value …   Auditor's dictionary

  • cash equivalent — noun a highly liquid debt instrument with maturities of less than three months • Hypernyms: ↑debt instrument, ↑obligation, ↑certificate of indebtedness • Hyponyms: ↑commercial paper …   Useful english dictionary

  • cash-equivalent items — Examples include Treasury bills and banker s acceptances. Bloomberg Financial Dictionary …   Financial and business terms

  • equivalent — e‧quiv‧a‧lent [ɪˈkwɪvlənt] noun [countable] something that is equal in value, amount, quality etc to something else: • The Japanese bank had the equivalent of $131 billion in assets on March 31. equivalent adjective : • It must issue 5 million… …   Financial and business terms

  • Cash and cash equivalents — are the most liquid assets found within the asset portion of a company s balance sheet. Cash equivalents are assets that are readily convertible into cash, such as money market holdings, short term government bonds or Treasury bills, marketable… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”