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Protections against pension transfer scams

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The Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations, SI 2021/1237, introduce new conditions which must be satisfied before a transfer between an occupational and a personal pension scheme can proceed.

One of the following two conditions must be satisfied before the transfer can go ahead:

  • The managers of the transferring scheme must satisfy themselves that the receiving scheme is a public service pension scheme, a master trust scheme, or a collective money purchase scheme.
  • Where a transfer is not into a scheme covered by condition 1, the transfer will be prevented if the managers or trustees of the transferring scheme identify a red or amber flag (both flags are prescribed in the regulations). A red flag will prevent the transfer from going ahead. Where an amber flag is identified, the transfer will only proceed after the member has taken ‘specified guidance’ on pension scams (and provided evidence of having taken that guidance).

The regulations come into force on 30 November 2021 and are made under new powers in the Pension Schemes Act 1993 which are brought into effect by SI 2021/1236, also with effect from that date.

Issue: 1552
Categories: News