The Pension Regulator (TPR) announced on Friday 27th March 2020 a delay of up to 3 months for defined benefit (DB) transfers.
This is due to falling stock markets caused by the coronavirus pandemic and will allow trustees more time to calculate cash equivalent transfer values (CETVs) given skeleton staffing and also allow them to plan for adequate funding in company pension schemes.
There has been an increase for CETV calculation requests and whilst putting additional strain on administration teams, a 3 month suspension will give them more time to protect the underlying value, funding position and stability of company pension funds..
Freezing DB transfers may also stop pension scammers or people making poor financial planning decisions.
The TPR has also said employers and scheme trustees can put pension funding payments on hold where necessary and delay the submission of recovery plans where such information is currently expected by the regulator as soon as possible.