Paul Cuff, CEO, XPS Pensions Group said: “In April 2015 George Osborne changed the pension world dramatically with the introduction of pension freedoms. Members were presented with a whole range of options and choices and it was clear there would be big challenges ahead. What we wanted to discuss at today’s conference was how pension schemes can allow their members to take advantage of these freedoms whilst ensuring their outcomes are protected.
“Pension schemes are aware more needs to be done to ensure members have the right information to make informed decisions with what is likely to be the biggest pot of money they will ever own. When presented with some of the remedies suggested in our recent member options research report, it is obvious pension schemes are willing to take action and make practical changes to ensure better member outcomes, they just need the support to do it.”
Also at the conference, David Fairs, Executive Director for Regulatory Policy, Analysis and Advice at The Pensions Regulator said: “There is a lot happening in the pension space with the DB White Paper, new Funding Code and the consideration of CDC schemes and DB consolidators, and the regulator is at the heart of it all.
“Our research has shown that pension scheme governance in pension schemes, most commonly small schemes, is not where we would like it to be. We are focussed on working with trustees to improve their service and communication to members by offering them the necessary tools to understand good practice. The Pensions Regulator wants to help pension scheme members to make sense of their options and ultimately make good decisions.”
As part of the conference, attendees were asked what measures should be introduced to help protect member outcomes:
• 75% agree that all schemes should offer partial transfers
• 81% believe appropriate education and support should be provided when transfer values are publicised on member statements
• 74% think employers should put forward low cost default options for members to be able to access freedom and choice flexibilities
• 57% would like to see access to independent advice for pension scheme members paid for by employers / trustees
• 43% believe they are not doing enough to stop their members from being scammed
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