In the 2014 Budget, the Government announced what it called “the most fundamental reform to the way people access their pensions in almost a century”. The most significant change announced was that, from April 2015, members with money purchase or cash balance rights would be able to draw down all their benefits as cash from age 55.
The Government consulted on a number of related questions and has now published its response. It will not stop DB to DC transfers in the private sector so the new DC flexibilities will be available indirectly to all. A relatively low level of transfers is expected, but schemes will be able to use the protections in existing law to reduce transfers if there is a “run on the scheme”.