Regulator updates guidance on transfer incentives

15 July 2010

Following comments made last year by David Norgrove, chair at the Pensions Regulator, where he suggested ‘if a company is willing to encourage the transfer, the company’s gain is likely to be the member’s loss’, the Pensions Regulator has taken steps to update its guidance on transfer incentive schemes.

In the new guidance published for consultation this week, the Regulator has clarified the role of the employer and trustee in a bid to make sure scheme members are in the best possible position to make the right decision about their benefits.

In order for transfer exercises to be conducted in an open, fair and transparent way, the regulator expects:

• members to be provided with clear information that is not misleading
• members to be provided with impartial and independent advice to ensure they make the right decisions
• trustees to engage in the offer process and apply a high level of scrutiny to all incentive exercises to make sure members’ interests are protected
• employers to make sure that any offers made are consistent with the principles in the guidance
• no pressure of any sort to be placed on members to make a decision to accept the offer

You can read the full press release on the Regulator’s website

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