Individual transfers—DC occupational pension schemes
Produced in partnership with William Sutton of Reed Smith LLP

The following Pensions practice note produced in partnership with William Sutton of Reed Smith LLP provides comprehensive and up to date legal information covering:

  • Individual transfers—DC occupational pension schemes
  • Statutory right to cash equivalent
  • Overriding nature of statutory right to transfer
  • Impact of pension freedoms
  • When does the statutory right apply?
  • Application to transfer cash equivalent
  • Schemes to which members can transfer their cash equivalent
  • No obligation on schemes to accept a transfer
  • Plans to limit the statutory right to transfer from autumn 2021
  • Pre-transfer due diligence
  • More...

Individual transfers—DC occupational pension schemes

CORONAVIRUS (COVID-19) UPDATE: On 13 May 2020, the Pensions Regulator (TPR) updated its DC investment and transfer value guidance to set out its position in relation to DC transfers during the coronavirus crisis. TPR expects DC trustees to prioritise DC transfers-out and, having carried out appropriate due diligence to address the risk of pension scams, process such transfers within a reasonable timeframe. This is because, if a member's transfer is delayed and their investments fall in value in that period, the member's cash equivalent transfer value will be reduced.
For more information, see Practice Note: Coronavirus (COVID-19)—the pensions implications for trustees—Dealing with transfer requests.
FORTHCOMING DEVELOPMENT 1: Further to the Pension Schemes Act 2021 receiving Royal Assent, including its section 125 which provides for regulations to be made that will restrict the statutory right to transfer for the purpose of limiting pension scams, on 14 May 2021 the government launched a consultation on a draft of these regulations. These regulations seek to impose transfer requirements on scheme trustees/managers that build on existing due diligence requirements. For more information, see: Plans to limit the statutory right to transfer from autumn 2021, below.
FORTHCOMING DEVELOPMENT 2: In a Statement of Policy Intent dated 28 October 2020, the Department for

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