The Pensions Regulator (TPR) has made clear to pension scheme trustees the need to prioritise pension switches during the current crisis, so members do not lose out through external factors such as market movements.
TPR’s advice issued in March was that trustees of defined benefit schemes could choose to delay new member request for transfer quotations by up to three months.
In the latest update to its Covid-19 guidance, the regulator said DC pension switches should be complete within a reasonable time frame but that having conducted all necessary due diligence. In particular, schemes were urged to monitor switching activity for potential scams.
David Fairs TPR’s executive director of policy says: “The Covid-19 pandemic has created unprecedented challenges for pension schemes and their members. That’s why we’ve been constantly reviewing and updating our guidance to support trustees and protect savers.
“Our latest guidance should help trustees of DC schemes prioritise what’s most important – such as ensuring DC to DC transfers are completed in a reasonable time, so savers don’t lose out.
“As well as carrying out their due diligence on transfers, trustees should help protect members by highlighting the risk from scammers in their own communications.
“Guidance on communicating with members during Covid-19 – including alerting them to the danger from scammers – is available on TPR’s website.”
