DB transfer

PASA’s DB transfers code of good practice is asking the industry to commit to delivering faster, safer transfers. Holly Roach reports

The Financial Conduct Authority (FCA) revealed unsuitable transfers out of defined benefit (DB) schemes could result in collective losses of up to £20bn worth of guarantees over five years.

Defined benefit (DB) trustees are now required to contact financial advice firms to ensure staff providing advice to a members are compliant under new adviser rules before carrying out a transfer exercise.

The buyout deficit of FTSE 350 pension schemes has reduced by £2.5bn since the introduction of Freedom and Choice due to an increased number of transfer exercises, Barnett Waddingham has found.

There needs to be wider access to partial transfers out of defined benefit (DB) schemes, according to a joint paper published by Royal London and Lane Clark & Peacock (LCP).

Requiring pension freedoms users to transfer their funds into a workplace pension scheme could damage savings further, says Baroness Ros Altmann.

Margaret Snowdon says the industry remains handicapped, regardless of multiple layers of protection adopted on a voluntary basis

This week's Pensions Buzz respondents were mostly in agreement that 10 weeks is an appropriate length of time to conduct a full DB to DC transfer.

This week's top stories were the seven-year ban a company director received for pension negligence, and the launch of the Pensions Administration Standards Association's defined benefit transfer guidance.

The Pensions Administration Standards Association (PASA) has launched guidance on defined benefit (DB) transfers to help give members better flexibility while retaining their pension benefits.