The Pensions Regulator has published guidance aimed at employers, trustees and scheme members designed to raise awareness of the implications of members accepting inducements to transfer out of DB occupational pension schemes. The Regulator has been concerned in relation to some transfers which have been offered to members with a view to enabling employers to make financial savings by avoiding their full pension liability. The guidance stresses the responsibility of trustees to ensure that members are given sufficient information to enable them to make an informed choice on any inducement offer. For example, this may involve encouraging members to seek independent financial advice.
A copy of the full guidance can be viewed on the Pensions Regulator’s website at http://www.thepensionsregulator.gov.uk/guidance/inducementOffer/index.aspx