The value of the pension benefits that you are allowed to take if you decide to leave an occupational pension scheme. The precise value of these benefits will be calcuated by an actuary who works for the pension scheme administrator.
this is a calculation, by the actuary, of an early leaver's pension entitlement and should allow her/him to effectively buy pension rights in the pension scheme run by the new employer or, alternatively, transfer to a personal pension.
If you stop paying into your AVC, FSAVC or Personal Pension Plan and decide to transfer the money out, this is what you'll be left with. In the first years of the plan, this is generally much less than the amount you have put in. Much, much less. See Paid-Up Value.
The amount representing the value of the person's accrued pension benefits in a pension scheme or arrangement. It is payable by one scheme or arrangement to another in order to buy the person pensionable service or pension benefits."
Instead of receiving a preserved pension when leaving an occupational pension scheme, a member has the right to transfer its value to a scheme operated by a new employer or a personal pension plan. The transfer value is the amount that is transferred. (N.B. An occupational pension scheme is not bound to accept a transfer value)
The value given to the pension benefits you've built up in a pension scheme if you decide to transfer them to another pension manager. Calculating transfer values is a dark art known only to actuaries, but it always seems to be that if you switch pension provider you end up losing some benefits.
Under the Pension Schemes Act 1993, leavers have certain protections as to continuing rights and options for dealing with their pension benefits if they change job. These include using the transfer value to buy an annuity from a pension company; buying a personal pension, or buying rights in the new employer's pension scheme. Guidelines are available from the Institute and Faculty of Actuaries, which sets down rules on the calculation of transfer. There are also special provisions for early leavers (less than two years service).