Update from The Pensions Regulator (TPR)
The TPR have issued an update to Trustees of Defined Benefit Pension Scheme (final salary schemes) that focuses on what they should do during this present crisis. Part of the guidance is around transfers out of DB schemes which may affect some of our clients.
- Trustees should give greater attention to the heightened risk of members being targeted by scammers and unscrupulous financial advisers.
- Trustees may decide to suspend cash equivalent transfer value (CETV) quotations and payments to give themselves time to review CETV terms and/or assess the administrative impact of any increase in demand for CETV quotes.
- Trustees may suspend CETV quotes and payments for up to 3 months then after that period they may decide to continue with the suspension or return to the normal rules regarding CETV.
- Trustees may review the terms they offer to existing members such as cash commutation rates or early retirement terms.
The TPR are trying to give some flexibility to Trustees of DB schemes so that they can protect the benefits of the members of the schemes.
This will be something that anyone, who is thinking of transferring out of a DB scheme will need to consider.
Phil J McGovern FPFS