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

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
  • Future plans to limit the statutory right to transfer
  • Pre-transfer due diligence
  • More...

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: In a Statement of Policy Intent dated 28 October 2020, the Department for Work and Pensions (DWP) announced ‘stronger nudge’ measures to encourage people to engage with Pension Wise, a free service which provides impartial guidance for people over 50 years of age with an occupational pension.

More specifically, the DWP announced it would commence FGCA 2018, s 19 (requiring the Secretary of State to make regulations which place a duty on trustees to refer members/beneficiaries to appropriate pensions guidance when dealing with applications to access pension savings using the pension flexibilities, and to ensure the member/beneficiary has either received the guidance (or some alternative regulatory guidance) or opted

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