Pension Flexibilities: Impact on DB schemes six months in

Published by Andrew Vaughan, Nick Griggs on

People are undoubtedly taking advantage of the new pension flexibilities available to defined contribution (DC) pension scheme members – with the Association of British Insurers reporting that over £4.7 billion was withdrawn in April and May 2015 alone.

However, have these changes had an impact on defined benefit (DB) schemes? Members of a DB scheme would currently need to transfer their pension to a DC arrangement to access these new flexibilities. Many members will be interested in this option, so it has been portrayed as a great opportunity for sponsors of DB pension schemes to reduce risk and potentially cost.  However, our research suggests that only a minority of the schemes allow a partial transfer of defined benefits, despite the evidence that increasing numbers are enquiring about exercising their options.

We have put together a detailed note that will be useful to employers in formulating a DB strategy to maximise any opportunities presented by the new more flexible pensions regime.

Please complete the form below to request a copy of our report.