Government announcements about transfers from Defined Benefit schemes and plans for impartial pension advice

21 July 2014

 

The Government have responded to the recent consultation on how best to deliver the radical changes to how people access their pensions announced at the Budget by confirming

· A provision to allow certain transfers out of DB schemes, and

· Arrangements for the promised free advice about the new pensions choices

and publishing a simple outline of the changes announced in the 2014 Budget.

A written Ministerial Statement confirms that members of private sector defined benefit schemes will be able to transfer to a defined contribution arrangement. The rule excludes pensions already in payment and will be subject to conditions.

The other main ingredient of the Government’s response to the consultation is an announcement about the promised “free and impartial” advice to help people understand the new pensions choices which will be available from April 2015. This guidance will be provided by organisations such as the Money Advice Service (MAS) and The Pensions Advisory Service (TPAS) rather than by the private sector.

At the same time the Government have published a simple outline of how the new system will work and what it means for savers and pensioners.