Guidance

Pension benefits with a guarantee and the advice requirement

Guidance for pension scheme providers on which pension benefits with a guarantee are safeguarded for the purpose of the advice requirement.

• From: Department for Work and Pensions
• Published: 27 January 2016
• Last updated: 29 January 2016 — See all updates

Documents

Pension benefits with a guarantee and the advice requirement

HTML

Pension benefits with a guarantee and the advice requirement

Ref: ISBN 978-1-78425-705-7

PDF, 47.4 KB, 5 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email [email protected]. Please tell us what format you need. It will help us if you say what assistive technology you use.

Details

This factsheet is intended to help pension scheme providers determine:

• whether certain types of pension benefits which contain a promise, including those with a guaranteed annuity rate (GAR), are safeguarded benefits for the purposes of the new advice requirement
• when the exception to the requirement to take independent advice for those with safeguarded benefits worth £30,000 or less applies

Update on the call for evidence on the valuation of pensions with a guaranteed annuity rate

Between 23 November 2015 and 15 January 2016, the government held a call for evidence on the valuation process for pensions with a guaranteed annuity rate (GAR) for the purposes of the advice requirement. This call for evidence was held in response to concerns that pension providers and pension scheme members were finding it difficult to understand when members were required to take advice before transferring such benefits, or accessing them flexibly.

The majority of consultation respondents were in favour of a change to the current valuation method. The government is now considering how best to simplify the current valuation process for the purposes of the advice requirement, and is planning to consult on draft regulations later in 2016. Comments from all interested parties will be welcome.

Published 27 January 2016
Last updated 29 January 2016 + show all updates

1. 29 January 2016

   Added “for the purposes of the advice requirement” to the penultimate sentence on the page (in the "Detail" section).

2. 27 January 2016

   First published.