Warning on mass exodus from DB schemes

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Pensions experts are warning of a mass exit from contracted out DB schemes as the DWP consults on plans to abolish transfers to DC alternatives.

Hargreaves Lansdown pensions analyst Laith Khalaf criticised the move, claiming it restricted member choice without delivering any benefits. He says: "It would also exclude final salary scheme members from taking their pension as and when they want, using the new flexible pension rules arriving next April." He also warns of a potential "firesale" of final salary liabilities as companies offer members incentives to transfer out "while they still can". "The Pensions Regulator could be in for a busy time making sure all such transactions are conducted properly and members' interests a...

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