Pensions - Articles - Government and regulators must stop pension transfers limbo


According to Royal London’s Policy Director, Steve Webb the DWP, the FCA and the Pensions Regulator need to act quickly to clear up confusion in the pensions market following the recent Lloyds Bank case over Guaranteed Minimum Pensions (GMPs),

 The ruling in the Lloyds Bank case means that workers who were building up GMPs in their company pension scheme between 1990 and 1997 could have their pensions increased to deal with any inequalities between men and women. But exactly how and when this should be done, and whether people who have already transferred out could be affected, is not clear from the ruling.

 In response, some pension schemes and administrators are concerned that they should not process transfers until equalisation has taken place, and some have even put a temporary hold on transfers. Unless the authorities act swiftly, this could leave many people unable to go ahead with a transfer until matters are resolved. Schemes are understood to be concerned that if they carry out transfers based on existing valuations they may later be found to have deprived members of the potential uplift from GMP equalisation.

 Commenting, Steve Webb, Director of Policy at Royal London said: ‘The recent Lloyds Bank case has made clear that pension schemes need to tackle inequalities in their schemes, but many questions remain unanswered. It is vital that pension savers who are considering a transfer out are not left in limbo while the industry works out what exactly this ruling means. The pensions industry and pension savers urgently need to hear from the authorities what they should do now with regard to pension scheme valuations and pension transfers. With some pension transfers already on hold, a public statement is urgently needed’.

   

Back to Index


Similar News to this Story

The importance of pensions to the economy
Commenting on the Chancellor’s Mansion House speech last night, Hannah English, Head of DC Corporate Consulting says: “While last night’s speech was u
Comment ahead of Pensions Review on Adequacy
The long-awaited Pensions Review on adequacy is expected to be launched before Parliament rises for Summer Recess next Tuesday, 22 July 2025, accordin
Sole trustees are now almost half of all PIT appointments
42% of Professional Trustee appointments to DB Pensions Schemes were sole trustees by March 2025, an increase from 37% in 2024 according to the latest

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.