Download the full outcome
Detail of outcome
The government’s response to this consultation includes a response to the call for evidence on the valuation of pensions with a guaranteed annuity rate (GAR) for the purposes of the advice safeguard. It also sets out the next steps the government proposes to take.
The regulations are published here:
Detail of feedback received
On 26 January 2016 we published guidance on Pension benefits with a guarantee and the advice requirement. It includes an update on the call for evidence on the valuation of pensions with a guaranteed annuity rate that was part of this consultation.
This consultation seeks views on proposed minor and technical regulatory changes to 4 areas of pensions legislation, to ensure that the new pension flexibilities operate as intended:
- pension sharing on divorce, including a requirement that, where an attachment order exists, schemes will have to write out to the former spouse at the point the member applies to take their flexible benefits
- the final technical changes needed to reflect the pension flexibilities to operate in specific situations (for example, where a scheme is winding up)
- the Pension Protection Fund, including amendments to the Pension Protection Fund (Entry Rules) Regulations around schemes whose sponsoring employer cannot have an insolvency event
- disclosure of information, to place an obligation on trustees of occupational pension schemes to give generic risk warnings to scheme members who wish to take their benefits flexibly
The consultation also seeks views on how the government should simplify the valuation process for the purposes of the new advice requirement for pensions which contain a guaranteed annuity rate (GAR).
We welcome comments from:
- those involved in designing and running pension schemes
- pension industry professionals and advisers
- pension scheme members
- consumer groups and member representative organisations
- anyone with an interest in pensions