Cash 'bribes' to leave DB pensions banned

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Cash incentives should be offered under "no circumstances" in enhanced transfer value (ETV) exercises, an industry code of conduct warns.

The voluntary code - backed by the Department for Work and Pensions - has steered away from an outright ban on the controversial practices that offer members inducements to leave generous defined benefit (DB) schemes. But it has set out strict rules on the use of cash offers to encourage members to accept changed terms or transfer out of their DB schemes through ETVs or pension increase exchanges. The code said employers can no longer offer members cash payments that are dependent on their acceptance of revisions to their scheme, but will still allow for cash to encourage member engag...

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