Combatting pension scams - restricting rights to transfer

Regulations will require immediate trustee action and ongoing, proactive intervention

In an attempt to reduce the number of people falling victim to fraudulent activity, the Government is implementing new regulations which will limit occupational and personal pension scheme members’ statutory right to transfer their savings where a scam is suspected.

Regulations come into effect on November 30, 2021

The Department for Work and Pensions (DWP) consulted on a draft of the ‘Conditions for Transfer’ regulations earlier this year – and published its response on 8 November 2021 – with the new regime coming into effect just a few weeks later on 30 November.   

Trustees will need to take certain immediate actions – in particular to ensure their scheme administrators have updated processes for dealing with pension transfers to reflect the new rules, and that appropriate checks are carried out on receiving schemes.