The Pensions Regulator chairman David Norgrove is set to launch a final attack on firms who encourage workers to switch from defined benefit to defined contribution schemes, the Mail on Sunday reports.
In his final speech before stepping down from the role at the end of the year, Norgrove (pictured) is expected to suggest this week that some employers are applying excessive pressure on employees when offering enhanced transfers.
Under such an exercise, known as an ETV, employees can be offered a financial inducement to swap their DB pension for a DC alternative. The regulator has previously indicated that trustees should assume such exercises are not in the best interests of members.
The report suggests Norgrove is convinced the pensions industry could face a mis-selling scandal if it fails to clamp down on the use of ETV exercises. The regulator is also set to publish its final guidance indicating how ETVs should be treated by trustees and the employer.
Norgrove told the paper he hoped the new rules would reduce transfers and block 20 to 30 deals currently in the pipeline. He said that only under exceptional circumstances, such as in ill health when an impaired annuity could offer improved benefits, should transfers go ahead.