The Government is close to agreeing a U-turn on its proposed ban on transfers from the majority of defined benefit schemes to defined contribution schemes.
In August, Money Marketing revealed the Department for Work and Pensions planned to remove the right to transfer from a contracted-out DB scheme to a DC scheme, in draft legislation to end contracting out.
The consultation said: “In addition to contracting-out terms, references to transfers between contracted-out defined benefit and contracted out DC schemes have been removed as this will no longer be possible post-abolition.”
However following a backlash from advisers and other industry experts, Money Marketing understands that officials have suggested amendments to the legislation which will allow transfers to continue. A source says work is continuing to modify the wording of the legislation.
A DWP spokeswoman says: “We’ll be responding to the consultation on the draft consequential legislation shortly.”