Schemes must be very careful when dangling the carrot of enhanced transfer values in front of members warns Martin Palmer, Friends Life
Since their inception, enhanced transfer values (or ETVs) have caused somewhat of a furore in the industry. Controversial because of the suggestion that they can exploit a lack of understanding of exactly what is being given up, ETVs – and the ways in which they are offered – remain one...
The Minister for Pensions, Steve Webb, has called on industry to look into misuse of enhanced transfer value schemes: “We urgently need to make sure that we root bad practice out of the market. The industry can’t go on offering superficially attractive deals to people that ultimately...
The Government has dropped drop plans which would have prevented most members of defined benefit (DB) schemes from transferring their full pension to UK defined contribution (DC) arrangements.
Minister for Pensions, Steve Webb said: "The abolition of contracting out on a DC basis...
A recap on transfer incentives
As the consultation on transfer incentives stimulated a healthy debate on the issue, we think it would be helpful to recap on why we have taken the position we have.
Worrying tactics
Since we first started looking at this area, trustees, employers,...
Pension sharing for pensions in payment
The divorce legislation is unclear on how to implement pension sharing orders where the member’s pension is in payment and there is some confusion among divorce practitioners. Recent Pensions Ombudsman cases support the Department for Work and Pensions’ (DWP’s) views on the...
The abolition of contracting out on a defined contribution (DC) basis may lead to unintended consequences. Indeed, following the Department for Work and Pensions’ consultation on the subject, Ray Chinn, LV= head of pensions, says: “We are pleased that the government has confirmed the...
Pensioners are on the move – and they want their pensions to move with them says Robin Ellison, Pinsent Masons
Moving around proves we are alive. Even plants, which usually are not regarded as having conventional motility, extend their roots or have their seeds propagated by bees. And the fact that there are moves afoot to deprive pensioners of the free bus pass – because it is proving more...
Private contractors need to do their research before tendering to operate local authority pensions warns Jeremy Taylor, Maclay, Murray & Spens
Over the past ten years or so, public private partnerships (PPPs) have become a familiar feature of the commercial landscape. These involve tendering by private companies for long term contracts to provide services to central government or local authorities. A PPP will usually involve a transfer...
“Trustees should start from the presumption transfer inducements are not in members’ interests.” This was the blunt statement of David Norgrove, chair, the Pensions Regulator (TPR) speaking at the NAPF annual trustee conference on 10 December 2009.
Many in the pensions...
Next on the DB agenda
Our 2009 defined benefit (DB) campaign resulted in some positive reactions from the pensions market, so a year on we are now shining the spotlight again on the challenges facing DB trustees and sponsoring employers.
In the coming months we will look at the importance...
The Pensions Regulator has had a busy year in terms of guidance, consultations, determinations and the use of its moral hazard powers
The Pensions Regulator (TPR) has issued a record number of documents in the last couple of months, culminating with the annual report and accounts for 2009/10.
Final guidance
Following consultation, the Pensions Regulator has issued final guidance in the following areas:
Internal controls...
