Pensions Incentive ExercisesTuesday, July 24, 2012
A voluntary code of good practice on incentive exercises was issued in June 2012 in response to concerns expressed by the Pensions Minister on “bad practices”.
Employers and those advising on pensions incentive exercises, which offer members inducements to transfer their pension rights or accept changes to them, should now comply with this voluntary code of practice. The code gives clear guidance for employers looking to manage defined benefit liabilities in this way and sets out seven key principles. For instance, the code states that cash should not be offered to members where this is conditional upon a member accepting the incentive offer. Modification exercises (such as pensions increase exercises) should not be set up so as to provide a substantial lump sum.
Your talk did a lot to help our firm’s reputation in this sector. – head of a leading team of solicitors specialising in further and higher education
Head of Team - Specialist Solicitors in Further and Higher Education