By Amanda Leek
The incentivised transfers industry is committed to adhering to the newly written code of good practice framework for ETVs, JLT Pensions Capital Strategies director Simon Taylor said today.
Taylor explained: "We anticipate that enhanced transfer values (ETVs) are not finished and offers will continue to be made to members. The shape and methodology of how offers are created may well change, with an increased emphasis upon making the 'right type of offer' to the 'right type of member' and this is obviously good news. In our experience many scheme members welcome the opportunity to understand the options available.”
He added: “The new code of practice provides a clear framework for the industry to follow when delivering incentivised transfer offers. The Pensions Regulator has recently issued revised guidance which commends trustees to comply with the code. It should be noted that the spirit of the code should be followed, and not just the letter.
"As one of the many firms that have been involved in providing ETV advice to members we believe that they will continue to form part of the genuine armoury of legitimate exercises available on the route to de-risk pension schemes. It is our understanding that savings can still be achieved against buy-out costs on prudent assumptions, but the members, must have access to advice."
The code followed concern from pensions minister Steve Webb about the practice of offering cash incentives to people to give up salary-related pension rights. He said the new code of practice must be adopted as the standard for all future transfer exercises without exception.