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This factsheet is intended to help pension scheme providers determine:
whether certain types of pension benefits which contain a promise, including those with a guaranteed annuity rate (GAR), are safeguarded benefits for the purposes of the new advice requirement
when the exception to the requirement to take independent advice for those with safeguarded benefits worth £30,000 or less applies
Update on the call for evidence on the valuation of pensions with a guaranteed annuity rate
Between 23 November 2015 and 15 January 2016, the government held a call for evidence on the valuation process for pensions with a guaranteed annuity rate (GAR) for the purposes of the advice requirement. This call for evidence was held in response to concerns that pension providers and pension scheme members were finding it difficult to understand when members were required to take advice before transferring such benefits, or accessing them flexibly.
The majority of consultation respondents were in favour of a change to the current valuation method. The government is now considering how best to simplify the current valuation process for the purposes of the advice requirement, and is planning to consult on draft regulations later in 2016. Comments from all interested parties will be welcome.