From The Pensions Regulator:
The Pensions Regulator today calls for greater scrutiny of transfer incentive exercises, warning trustees of the risks these pose to members’ benefits.
Speaking at the NAPF Annual Trustee conference, David Norgrove, chair of the Pensions Regulator said:
“Trustees should start from the presumption that such exercises and transfers are not in member interests. If a company is willing to encourage the transfer, the company’s gain is likely to be the member’s loss.”
The effect of the economic climate on pension scheme deficits has led many employers to review the form of the pension provision they offer to their employees. This in turn has fuelled the level of activity in the de-risking and the liability-management markets.
Since regulatory guidance on inducements was published in January 2007, transfer incentives or enhanced t…