Guidance

Safeguarded-flexible pension benefits: simplified valuation and introduction of personalised risk warnings

This information is for pension providers, administrators, trustees and scheme managers.

Document

Safeguarded-flexible pension benefits: simplified valuation and introduction of personalised risk warnings

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Details

This guidance follows amendments to the Pension Schemes Act 2015 (Transitional Provisions and Appropriate Independent Advice) Regulations 2015. The amendments require trustees and scheme managers to:

  • send tailored communications (personalised risk warnings) to members with safeguarded-flexible benefits
  • use the transfer value of members’ safeguarded benefits, when assessing whether the value of their pension pots is above the threshold at which they are required to take financial advice
  • make transitional arrangements to inform members who are affected by the change in valuation methodology

We published the government response to a consultation on Valuing pensions for the advice requirement and introducing new consumer protections in July 2017.

Published 13 November 2017
Last updated 6 February 2018 + show all updates
  1. Added a valuation section (paragraphs 1 to 11) and made some changes related to transitional provisions.
  2. First published.