Global menu

Our global pages

Close

Eversheds comment: Welcome changes to UK DC pension rules

  • United Kingdom

    21-07-2014

    Commenting on the UK Chancellor's statement summarising the key elements of the Treasury's response to its consultation on the changes to tax rules for DC pensions, Francois Barker, head of pensions at law firm Eversheds, says:

    "The decision to require independent organisations to deliver the promised guidance guarantee to members as they approach retirement is the right one. This means that individuals will be able to have confidence in the impartiality of the guidance they are receiving. However, a lot of work needs to be done between now and April next year to ensure that the guidance and the modes of delivery are ready and fit for purpose.

    "It is also pleasing to see that the Government will continue to allow transfers from the vast majority of DB schemes (including funded public sector schemes) to DC schemes. The Budget was all about giving people flexibility and choice and banning DB to DC transfers would have sent out a very confusing message. The safeguards announced should help to ensure that individuals are in a position to make an informed decision about whether or not to transfer. However, the failings identified in the FCA's report on Enhanced Transfer Values, which has also been issued today, will need to be addressed to ensure that the financial advice that members receive is appropriate."

    Francois Barker, Product Group Head

    This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

    < Go back

    Print Friendly and PDF

    © Eversheds Sutherland 2021. All rights reserved. Eversheds Sutherland is a global provider of legal and other services operating through various separate and distinct legal entities.

    Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.