From April 2015, individuals will have much more choice in accessing their pension savings. Although these changes have the greatest impact on defined contribution (DC) arrangements, there are some matters for defined benefit (DB) schemes to consider too.
In addition, the greater flexibility on offer in DC arrangements may be attractive to some members, which could lead to an increase in transfer requests from DB schemes. Employers may also propose exercises that encourage members to transfer their pension to another arrangement.
This information sheet summarises the key issues trustees should be thinking about as April 2015 approaches and also explains the issues that trustees should consider if their employer is contemplating such an exercise.