TPR chair warns of box-ticking on transfer incentives
Share
The Pensions Regulator chairman David Norgrove has warned against a “box-ticking” approach to transfers out of occupational pension schemes.
TPR has toughened its position on transfer incentives in a new consultation document published today.
The proposed guidance requires trustees to provide members with clear information that is not misleading and independent advice to ensure they make the right decisions.
It also says trustees must heavily scrutinise all incentive exercises and ensure no pressure is being placed on members to accept an offer to transfer.
Norgrove says: “Since we published our initial guidance in 2007, we have seen behaviour that concerns us. There has been a box-ticking approach that has led to exercises being run without due consideration to scheme members.
“As a result we will be looking closely at exercises and working with other regulatory bodies to ensure that standards are improved. We expect trustees to play an active role in ensuring that members are able to make informed decisions.”
In line with the FSA’s approach, TPR says trustees should presume transfers are not in members’ interests and should therefore approach any exercise cautiously and actively.
The regulator adds that the Pensions Ombudsman will be taking TPR’s guidance into account when adjudicating complaints.
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
