The Pensions Regulator has forced six defined-contribution pension schemes to rewrite their retirement literature after failing to flag up the open market option adequately to members.
TPR reviewed the literature of 97 DC pension schemes and found 98 per cent were complying with the legal requirement to inform members of the Omo.
A total of six schemes were found to be “non-compliant to a material degree” and were referred to TPR’s casework teams for further
nvestigation as they fell short of rules, such as including specific disclosure in communications to members at least six months before their retirement date.
TPR’s annual report and accounts also reveal that only 23 per cent of scheme members in the study took up the Omo, compared with 40 per cent in the personal pension market.
Hargreaves Lansdown pensions analyst Laith Khalaf says: “If this sample of schemes is representative of the occupational DC market, then there could be tens of thousands of members who are not getting the full facts.”