1 June 2022 will see new requirements for trustees to give members a “stronger nudge” to take appropriate pension guidance (“pension guidance”) before starting to draw flexible benefits or (in certain cases) transferring their flexible benefits. “Flexible benefits” are broadly, money purchase or cash balance benefits.
Unfortunately, the drafting of the legislation makes what is a well-intentioned requirement to protect members likely to be unnecessarily complicated in practice. This note explains the new requirements and sets out practical steps trustees (and their administrators) should be taking to ensure compliance.
Authored by the Pension Team.
Pension transfers: new requirements in force on 30 November 2021
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