The Pensions Regulator (TPR) is set to launch a consultation on fresh guidance for defined benefit (DB) trustees handling transfer requests. This is in anticipation of the radical ‘freedom and choice' pension reforms due to come into force in April 2015.
The aim of the new guidance is to give an overview of DB scheme trustees' duties in relation to:
- existing technical guidance on calculating CETVs (cash enhanced transfer values); and
- the main changes following the Budget.
News of the consultation comes after advisers raised concerns that current guidance (dated September 2008) would be outdated once the ‘freedom and choice' reforms take effect in April.
The proposed consultation is welcomed and it is hoped that it provides some clarity and useful guidance for trustees and the industry alike.