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.
STOP PRESS: Following a period of consultation, the government decided to restrict the statutory right to transfer (contained in sections 93–101 of the Pension Schemes Act 1993) to transfers where the receiving scheme falls within certain categories — see Which schemes can a CETV be transferred to? below.

On 11 February 2021 the Pension Schemes Bill finally received Royal Assent becoming the Pension Schemes Act 2021 (PSA 2021).  Among other things, Part 5 of the PSA 2021 introduces new restrictions on transfers between schemes unless certain conditions are satisfied. The new restrictions are aimed at protecting members from pension scams.

The conditions to be satisfied are to be set out

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