Following our story on 13 March stating that OPRA were to allow pension scheme trustees to block pension transfers from occupational pension schemes, Invensys are the first company to take advantage.
The FTSE 100 quoted company have implemented their pension scheme trustees advice and are preventing people from transferring away from the scheme which is currently in debt, until new transfer calculation rules are implemented. The move by Invensys could mean lower transfer values for scheme members when the new rules are announced.
Following OPRA's decision, they have come under immense industry pressure to back down on their decision. Some of the press has speculated that OPRA will withdraw their decision but, as yet, it is unknown.
Our tip:
Pension transfers are highly complex and you need to take independent financial advice. Do not rush into transferring your pension benefits but keep an eye on the solvency of the scheme. You may not get the full benefits you were promised if the scheme is in deficit and may need to make alternative saving arrangements.
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Learn more about pension transfers in the Pensions Adviser.com.