Call for crackdown on DB transfer cash inducements

It expressed concern the use of cash inducements by companies to incentivise DB scheme members to transfer out of corporate pension schemes will lead to a significant loss of pension entitlement. It proposes guidelines should ensure individuals can clearly identify pension benefits which are being given up on leaving a pension scheme and are able to evaluate the loss of benefit against the cash and transfer value being accepted. “The issue involves a rapidly growing number of companies and some very large schemes," says Mark Wood, chief executive at Paternoster. “Cash of tens of thous...