Change to Transfer LegislationWednesday, July 4, 2012
From 6 April 2012, there was a change in the legislation regarding transfers of pension rights.
It is now possible for members to transfer benefits from contracted-out to contracted-in pension schemes. Many members have a statutory right to a transfer (irrespective of contrary provisions in pension scheme rules). Before such a transfer can take place a number of ‘safeguards’ must be met, including that the member:
• has received a statement showing the effect on his benefits in the receiving scheme;
• accepts that these benefits may be in a different form and of a different amount; and
• accepts that the receiving scheme will not be obliged to pay a survivor's pension from the transferred amount.
Any transfer is subject to a receiving scheme being willing to accept it. It will be necessary to consider the impact of these changes on administration procedures and member communications. We would also recommend updating the Scheme rules in due course to reflect the legislative position.
The training session was very good – pitched just right in terms of our knowledge levels.
Trustee - Pension Scheme