The National Association of Pension Funds (NAPF) commented on the consultation paper published by the FSA today (Tues) on proposals to change the way pension transfer values are calculated.
Darren Philp, Director of Policy of the NAPF, said:
“People depend on their pensions to have a decent income in retirement, so any transfers need to be handled in a fair and responsible way.
“If an employer is looking to conduct a transfer exercise, it should make sure that employees are given clear, balanced information that highlights any risks, and it should offer them free independent advice enabling people to make an informed decision. We need to remember that in some cases a transfer may be in the saver’s best interest.
“The NAPF is closely engaged in drawing up an industry code of good practice on incentivised transfers with other industry groups. Valuing the pension correctly is a key starting point and we will look carefully at the proposals that the FSA is consulting on.”
Notes to editors:
1.The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector. Contacts:
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]