Pension freedoms—an introduction
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...

FORTHCOMING DEVELOPMENT: On 28 October 2020 the Department for Work and Pensions (DWP) issued a Statement of Policy Intent announcing 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. The ‘stronger nudge’ measures are part of a package which aim to facilitate informed decision making regarding accessing their pension savings and protecting consumers from scams.

During the passage of the Financial Guidance and Claims Act 2018 (FGCA 2018), there were concerns that Pension Wise guidance, while a valuable service, was failing to reach enough people. The government therefore made a commitment to test a ‘stronger nudge’ to pensions guidance for members wishing to access pensions flexibilities as required by FGCA 2018, ss 18 and 19. In particular, FGCA 2018, s 19 (which inserts a new section 113B in the Pension Schemes Act 1993), once enacted, requires the Secretary of State to make regulations which place a duty on trustees and managers of occupational pension schemes to refer a member or other relevant beneficiary to appropriate pensions guidance and explain the nature of that guidance when dealing with applications to access pension savings using the pension flexibilities, and to ensure the member or beneficiary has either received the guidance or opted out of

Popular documents