Norton Rose Fulbright LLP
10/11/2024 | News release | Archived content
PLSA publishes guidance helping employers and trustees of defined contribution pension schemes on options for savers
The Government's announcement in July that it might introduce a new duty on pension scheme trustees to offer services and products to members on retirement as part of the new Pension Schemes Bill, brought concern to employees and trustees of defined contribution schemes.
While some current schemes already provide financial advice as part of the scheme on retirement, at present such schemes are a rarity. It is advised that those which do not already off this, consider partnering with a third party to offer savers access to decumulation options on retirement.
PLSA calls for more clarification from the Government, the Department for Work and Pensions and from TPR on communication and risks associated with decumulation, and how tailored the advice should be, or specific to the individual saver.
The guidance also calls for a line to be drawn where trustee's legal responsibility ends, and for a statutory discharge to be in place to protect the role of trustees.
While some current schemes already provide financial advice as part of the scheme on retirement, at present such schemes are a rarity. It is advised that those which do not already off this, consider partnering with a third party to offer savers access to decumulation options on retirement.
PLSA calls for more clarification from the Government, the Department for Work and Pensions and from TPR on communication and risks associated with decumulation, and how tailored the advice should be, or specific to the individual saver.
The guidance also calls for a line to be drawn where trustee's legal responsibility ends, and for a statutory discharge to be in place to protect the role of trustees.