cash equivalents


cash equivalents
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 CETVs are now calculated by trustees, after obtaining actuarial advice, and GN11 is no longer in force.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.
+ cash equivalents
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.

Look at other dictionaries:

  • Cash Equivalents — Investment securities that are short term, have high credit quality and are highly liquid. Also referred to as cash and equivalents . Cash equivalents are one of the three main asset classes, along with stocks and bonds. These securities have a… …   Investment dictionary

  • cash equivalents — Highly liquid investments that are capable of being converted into known amounts of cash without notice and that were within three months of maturity when acquired; from this total must be deducted bank advances that are repayable within three… …   Accounting dictionary

  • cash equivalents — pinigų ekvivalentai statusas Aprobuotas sritis buhalterinė apskaita ir finansinė atskaitomybė apibrėžtis Trumpalaikės (iki trijų mėnesių) likvidžios investicijos, kurios gali būti greitai iškeičiamos į tam tikras pinigų sumas ir kurių vertės… …   Lithuanian dictionary (lietuvių žodynas)

  • cash equivalents — Defined by FASB as short term, highly liquid investments that are both: ( a) readily convertible to known amounts of cash, and ( b) so near their maturity that they represent insignificant risk of changes in value because of changes in interest… …   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

  • Cash And Cash Equivalents - CCE — An item on the balance sheet that reports the value of a company s assets that are cash or can be converted into cash immediately. Examples of cash and cash equivalents are bank accounts, marketable securities and Treasury bills …   Investment dictionary

  • cash and cash equivalents — The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as bonds and banker s acceptances. Cash equivalents on balance sheets include securities ( e …   Financial and business terms

  • cash collateral — cash and cash equivalents held by the debtor in Chapter 11 subject to liens of other parties. (Glossary of Common Bankruptcy Terms) Cash, bank accounts or cash equivalents subject to a security interest. (Bernstein s Dictionary of Bankruptcy… …   Glossary of Bankruptcy

  • Cash — usually refers to money in the form of currency, such as banknotes and coins. In bookkeeping and finance, cash refers to current assets comprised of currency or currency equivalents that can be accessed immediately or near immediately (as in the… …   Wikipedia

  • cash collateral — n: cash or cash equivalents (as negotiable instruments, securities, and documents of title) as specified in section 363 of chapter 11 of the Bankruptcy Code in which both the estate and another entity have an interest see also bankruptcy code in… …   Law dictionary


Share the article and excerpts

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

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.