View more on these topics

Pensions Regulator to consult on “safe and secure” DC pensions

The Pensions Regulator outgoing chairman David Norgrove will today unveil plans to ramp up scrutiny of defined contribution schemes ahead of the 2012 reforms.

In his final speech before he leaves the post at the end of the year, Norgrove (pictured) will outline the regulator’s strategy, including a consultation in early-2011 seeking industry views on how to ensure “safe and secure” DC pensions for the future.

He will say: “In trust-based DC schemes the accountability is clear. There is less clarity in DC contract-based schemes. We have been liaising with our colleagues at DWP, the FSA and Treasury, as well as with major players within the pensions industry, to explore what a safe, secure and sustainable DC market might look like.

“In the new year we plan to consult with the industry on our thoughts in this area, with the aim of publishing a revised DC regulatory framework in late 2011.”

Norgrove is also set to issue a final warning to trustees of schemes involved in enhanced transfer value, or ETV, exercises. He will reiterate the “concerning behaviour” the regulator has witnessed in this area, including daily phone calls, emails and home visits being used to pressurise members into switching from a defined benefit to a DC scheme.

He will add: “Offers that involve cash incentives are likely to result in less objective decision making, and members may struggle to evaluate the strength of the offer in the context of the benefits they are giving up and the risks that are being transferred to them. They need to be able to make an informed choice, and take such decision with their eyes open.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com