Trustees must continue to prioritise transfers between defined contribution schemes during the Covid-19 pandemic and stay alert to scams, the Pensions Regulator says.
In an update to Covid-19 guidance for DC schemes, the watchdog reminds trustees transfers between DC schemes must remain a priority during the pandemic.
Guidance published at the end of March explained that trustees of defined benefit schemes may choose to delay new member requests for transfer quotations by up to three months to review their transfer basis.
TPR points out this is not the case for transfers between DC schemes where the valuation of benefits is less complex.
TPR executive director David Fairs says: “The Covid-19 pandemic has created unprecedented challenges for pension schemes and their members. That’s why we’ve been constantly reviewing and updating our guidance to support trustees and protect savers.
“Our latest guidance should help trustees of DC schemes prioritise what’s most important – such as ensuring DC to DC transfers are completed in a reasonable time, so savers don’t lose out.
“As well as carrying out their due diligence on transfers, trustees should help protect members by highlighting the risk from scammers in their own communications.
“Guidance on communicating with members during Covid-19 – including alerting them to the danger from scammers – is available on TPR’s website.”
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