TPR transfer value guidance too late to be effective

Mercer said the timing of the guidance, which was published last week, did "not dovetail with the expectations imposed on trustees under the regulations" as they would have to reach decisions on the calculation of cash equivalent transfer values before the October 1 deadline.

Mercer head of retirement resource group Deborah Cooper said: "Trustees are already thinking about their new responsibilities. They will have had to consult with their actuary, complete their decision-making process and notify their administrators of any changes needed to the consultation basis and disclosures to members well in advance of October 1 to comply with regulations.

Cooper added: "The regulator has an obligation to promote good administration of schemes – having a consultation on guidance that won’t be complete until after it is needed does not help. It just adds an additional burden on trustees who will have decided on a course of action before the guidance is finalised.

TPR executive director Chris Dobson said the guidance aimed to help scheme trustees understand and fulfil the new regulatory responsibilities the department for work and pensions are set to introduce.

He said: "The guidance – being published ahead of the new transfer value legislation coming into force – explains the new duties for trustees in respect of transfer values, highlights the importance of collaborative working and outlines methods for calculation of transfer values."

The regulator said the guidance must be read in conjunction with the regulations and warned that it did not replace the regulations.

The six-week consultation period ends on September 19.