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 at 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.”