UKPG and Sackers welcome DWP plans to cut pension transfer delays

UK Platform Group (UKPG) and Sackers have welcomed proposals from the Department for Work and Pensions’ (DWP) latest consultation on pension transfer regulations. 

These include plans to remove the overseas investment amber flag and to exempt people from Money and Pensions Service guidance if they have already received it within the past 12 months. 

UKPG and Sackers said these steps would cut delays and reduce unnecessary admin in the transfer process.

UKPG added that any changes to transfer regulations must have objective and consistent criteria to protect consumers and support an efficient transfer process.

Julia Sage-Bell, senior policy adviser at PIMFA, said: “The DWP has outlined a number of positive changes within this consultation which we believe will reduce unnecessary friction within the pension transfer process. 

“While the DWP should be commended for its ambition to deliver better outcomes for consumers, we believe the use of the term ‘any reputable scheme’ may lead to negative, unintended consequences.

“In its current form, the term is inherently subjective, as what constitutes a ‘reputable’ scheme is likely to be interpreted differently by different schemes, trustees, administrators, and other stakeholders.”

Sage-Bell added: “This creates a significant risk of inconsistent application, uncertainty for members and potentially unequal outcomes in otherwise similar cases.