Consultation on major changes to the transfer values regime

The Government is consulting on major changes to the law on transfer values. In future trustees may need to make additional checks or require the member to take “scams guidance” from the Money and Pensions Service depending on the type of receiving scheme. Deciding which requirements apply won’t always be straightforward, with trustees potentially liable if they get it wrong.

Government plans major changes to transfer values regime

Major changes to the law on statutory cash equivalent transfer values (CETVs) are proposed in a Government consultation published on 14 May which runs until 10 June 2021. The Government intends to introduce the regulations in Autumn 2021. The proposed changes are designed to reduce the risk of members falling victim to pension scams, but will significantly increase the level of checks and analysis which trustees are required to carry out before processing a transfer value under CETV legislation. The conditions which will…