Pension freedoms—an introduction

The following Pensions practice note provides comprehensive and up to date legal information covering:

  • Pension freedoms—an introduction
  • Who do the pension freedoms apply to?
  • What are the pension freedoms?
  • Buying an annuity
  • Entering into drawdown
  • Taking an uncrystallised funds pension lump sum (UFPLS)
  • How can schemes take advantage of the pension freedoms for their members?
  • The statutory permissive override
  • Power to amend scheme rules by resolution
  • Facilitating transfers out of the scheme
  • More...

Pension freedoms—an introduction

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 out of receiving it before proceeding with an application) and introduce and consult on draft regulations implementing the duty on trustees or managers of occupational pension schemes to deliver the nudge to pension guidance. This consultation is awaited. The DWP expects that the Pensions Regulator will provide guidance for trustees and managers to support them in complying with the new duty.

On 9 July 2021 the DWP finally launched a consultation on the proposed regulations under FGCA 2018, s 19 that would require trustees and managers of occupational pension schemes to ‘nudge’ individuals who wish to access their pension to obtain guidance from Pension Wise. The DWP

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