Report: Defined Benefit Transfers: A Guide to Good Practice

This latest defined benefit pension transfer guidance seeks to create a framework which achieves a balance between member protection and an individual’s right to take their pension in a different shape or form, via a flexible arrangement.

Compiled by the Pensions Administration Standards Association’s defined benefit transfers working group, the guidance has three aims:

• to improve the overall member experience through faster, safer transfers;
• to improve efficiency for administrators;
• to improve communications and transparency in the processing of transfers.

The guidance also includes a standardised data template to make the process of moving pension funds more efficient.

Guy Opperman, minister for pensions and financial inclusion, who attended the launch of the guidance, said: “Transfers give people flexibility when it comes to their pension pots, and they must be fast and safe. This guidance gives the clarity needed – for both schemes and members – to ensure they’re done efficiently and transparently. It is a must-read for anyone with a stake in the pension transfer process.”