Our update on what's new for trust-based DC & hybrid
DB/DC schemes
Following a three month consultation, Andrew Patten looks at the
Government's proposals on ensuring early exit charges
and the process for transferring benefits between schemes do not
deter people from making use of the new pension freedoms.
Pension transfers
A Pensions Regulator survey carried out during the consultation
revealed that the mean average transfer time for trust-based
schemes is significantly longer than for FCA regulated
contract-based schemes – 39 days versus 16 days. A PLSA survey conducted at the same time shows
an 11 day versus 7 day median average transfer time, with mean
times skewed by some very long transfer times. While there
are questions about the reliability of the figures and the
Government acknowledges there are good reasons for trust-based
transfers taking longer, it considers there is scope to narrow the
gap. To this end, the Pensions Regulator will
