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

You may get six figure tax bill after tiny uplift to pension
New FOI reply reveals over 100,000 savers could face shock six figure tax bills following tiny uplifts to their pension – urgent need for clarity from
New research from the PSIG uncovers depth of pension scams
The Pension Scams Industry Group (PSIG), the voluntary body set up to support trustees, providers and administrators in combating pension scams, has p
Keeping pensions safe for the millions newly saving
A report published today demonstrates how The Pensions Regulator (TPR) is working to make sure members’ savings stay safe.

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS


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