To celebrate the new tax year, we provide a round-up of some of the pensions measures that come into force on 6 April 2018.
Bulk transfer without consent of DC benefits
At last, trustees and employers can close an occupational money purchase (DC) plan without the pension plan actuary having to decide how the certification requirement under the preservation regulations operates in the context of a DC bulk transfer. By way of a reminder, before 6 April 2018, an actuary had to certify that “the transfer credits to be acquired for each member under the receiving scheme in the categories of member covered by this certificate are, broadly, no less favourable than the rights to be transferred.” Did this mean, for example, that the actuary was expected to consider the charging structure in the receiving plan? Instead, trustees can reach their own assessment as to the suitability of the receiving plan. If the receiving plan is not an authorised master trust then the trustees must take investment advice from an adviser who is independent of the receiving plan. Broadly speaking, an adviser will be “independent” if he has not provided advisory, administration or investment services to the receiving plan, service provider or sponsoring employer or a connected firm in the preceding year before the transfer takes place.
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