And Finally...

The Pensions Regulator has recently issued its regulatory guidance on DB-to-DC transfers, following a consultation exercise earlier in the year. The guidance sets down important principles for trustees of DB schemes, in light of the additional flexibilities now available to DC scheme members and the anticipated consequential upsurge in DB-to-DC transfer requests.

Types of benefit, and the advice requirement

The advice requirement, namely that the member must obtain appropriate independent advice, applies whenever a member wishes to acquire "flexible benefits" (broadly, money purchase or cash balance benefits) by the transfer from a scheme, or the conversion within a scheme, of "safeguarded benefits" (being essentially any benefits that are not flexible).