Pension transfers


New pension transfer requirements

New regulations came into force on 30 November 2021 introducing significant changes to the statutory transfers regime. Whilst administration is clearly a key component of the transfer process, the new requirements will require trustees and managers to make decisions about the governance of their process and how they intend to manage the risks associated with transfers.

Key points arising out of the new transfer requirements

  • With the aim of making it “as hard as possible for criminals to carry out their malevolent intentions”, the regulations introduced new conditions restricting the statutory right to transfer for both occupational and personal pension schemes.
  • Under the new measures, transfers to certain types of scheme can go ahead with minimal extra due diligence. This includes transfers to a public service pension scheme and to an authorised master trust.
  • For other transfers, trustees and managers will need to decide whether certain “red flags” or “amber flags” are present.
  • TPR has published guidance to help trustees and managers understand their new powers to halt suspicious transfers, including a transfer process decision tree.

How we can help

We can provide tailored support to trustees / managers and their administrators in complying with the new requirements, including:

  • training trustees / managers and/or administrators
  • advising on governance, delegation and risk management
  • supporting with strategy and design of transfer process
  • carrying out health checks on existing transfer processes against the new requirements
  • writing and/or reviewing communications
  • advising on technical issues, eg on the standards of proof needed when making judgement calls under the new requirements
  • running a case study
  • assisting with individual member queries and/or complaints.

Also take a look at our recent practical guide on the new statutory transfer regime.