New laws proposed by UK government on bulk transfers of pension rights
The Department for Work and Pensions (DWP) opened a consultation on the proposed new Contracting-out (Transfer and Transfer Payment) (Amendment) Regulations 2018 (16-page / 263KB PDF) on Thursday.
It is the DWP’s intention that the new rules would take effect from 6 April 2018.
“These amendments will enable any salary-related occupational pensions right (active, deferred and pensioner) to be transferred to newly established schemes (that have never been contracted out) without member consent under specified conditions,” the DWP said.
“These conditions will be that the rights of the member are not adversely affected by the transfer and that the same protections must be provided by the new scheme, for example revaluation and indexation that would have been afforded to members if the transfer were to a formerly contracted-out scheme,” it said.
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