Information for active and deferred members only
New pensions regulations come into force from 30 November 2021 that set out additional conditions which must be met in order for members to have a statutory right to transfer their benefits out of the Scheme.
Trustees of occupational pension schemes, such as NGUKPS, are currently required to comply if a member requests a transfer and has a statutory right to do so, even if they have concerns about the transfer in relation to pension scams.
The new regulations, arising from the Pension Schemes Act 2021, ensure that trustees have the tools to act where suspicious about the circumstances that have prompted the transfer request are identified.
What do the new regulations involve?
Trustees will be required to ensure that at least one of four specified conditions is met before a statutory transfer is made:
The receiving scheme must be within a list of types of receiving scheme which present a low scams risk
In the case of a transfer to an occupational pension scheme not of a type on that list, the member can demonstrate an ‘employment link’ with the proposed receiving scheme
The member can demonstrate a ‘residency link’ to a proposed receiving scheme that is a Qualifying Recognised Overseas Pension Scheme (QROPS); and
The trustees will consider whether any specified red flags and amber flags are present:
if none are present, the transfer can proceed; but
if there are red flags the transfer cannot proceed; and
if there are no red flags but there are amber flags, the transfer can only proceed if the member receives pension transfer scams guidance from the Money and Pensions Service (MaPS).
The Scheme Trustees are currently updating the steps of their transfer process to reflect the new regulations.
For active and deferred members who are considering transferring their benefits after 30 November 2021, the process may take slightly longer to allow for the additional steps and checks required.