Timing on transfers – do trustees have any flexibility?
Published on 16th Sep 2015
A recent Pensions Ombudsman decision indicates that trustees do have flexibility over the timings of cash equivalent transfer value (CETV) applications. Previous Ombudsmen have imposed fairly tight restrictions on the time limits in this situation, but in this complaint the new Pensions Ombudsman, Anthony Arter, was willing to give the scheme administrator more latitude.
A scheme member wanted to transfer his benefits to a Guernsey-based QROPS but was unable to do so because the scheme was delisted by HMRC before the transfer was completed. There were also delays due to the need to do member benefit recalculations and a GMP reconciliation exercise, together with obtaining and applying advice on the correct way to revalue members’ benefits. There were delays in processing the transfer during a second period after the administrator supplied the statement of entitlement for various reasons, including the need to seek proof of the member’s identity, completion of HMRC forms relating to his GMP and a release form in relation to his AVCs.
The Ombudsman dismissed the member’s complaint, finding that there were valid reasons for the various delays, which were reasonable on the facts.
