Defined Benefits Pension Transfer

Background

There are at best only a handful of companies in the private sector that offer a Defined Benefit pension scheme to new employees. Whilst the number of active members is declining there are many more deferred members.
Whilst they would have got a statement of their deferred rights when they left, they don’t get regular updates. They may not be aware of its real value or even where it is so advisers must be able to assess these benefits as part of the financial planning process.
For clients under 55, many firms will not give advice on transferring these to an MP arrangement with a view to taking benefits flexibly. However, transferring may be an option once a client is above minimum pension age. This is an irrevocable decision and the FCA rightly the highest standards from advisers working in this field
Whether the client is under or over MPA, or not even considering a transfer, an adviser must be able to assess what their deferred rights will give them and how this might meet their needs. If advice is required on transferring to take benefits flexibly then a comparison must be made between how the scheme and the new arrangement might meet the client’s need for income, capital and death and survivor benefits.

Overall Objective

By the end if this event delegates will:
• Know the benefit structure of Defined Benefit schemes, particularly for deferred members.
• Identify how retaining scheme membership or taking benefits flexibly can meet the client’s needs for income, capital and survivor benefits
• Understand the FCA’s requirements in giving advice on transferring benefits

Learning objectives

By the end of this event delegates will:
• Understand the benefit structure of a DB scheme and why reviewing the scheme rules is essential.
• Understand the rights of deferred members with particular reference to how deferred pensions are revalued.
• Understand the protection offered by the Pension Protection Fund.
• Understand how both DB and MP flexible benefits can meet individuals’ needs for income, capital, and survivor benefits.
• Be able to identify the key factors that must be considered in assessing whether the deferred pension meets the customer’s needs.
• Understand the FCA’s requirements and process to give advice on transferring to flexible benefits

About the Trainer

My name is John Trayner (yes!) and I am a freelance trainer based in London.

Exams are a necessary part of most individuals working in Financial Services. Having slogged through a whole range I ended up as a Fellow of both the Chartered Insurance Institute and the Personal Finance Society with quite a lot of retakes on the way.

I have acted as a senior and associate examiner for a number of subjects although I am no longer involved in this work so I have no insights into any future exams.

The exams that I train are:

• R01, R02, R03, R04, R05, R06,
• J02, J05, J10
• AF1, AF4, AF5, AF7,

I had over 45 years experience in the business with the last 15 working in the training department of a major bank.

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