At the end of last year, The Pensions Regulator (TPR) published new regulations, that will require the Trustee and administrators of pension schemes to, in some cases, do more checks on a transfer, to make sure it’s not a scam.

The regulations, arising from the Pension Schemes Act 2021, introduce a system of red and amber flags, giving Trustees the power to refuse transfers where there’s a heightened risk it may be part of a scam.

Both the regulations and guidance were drafted with close co-operation between the Department for Work and Pensions (DWP), TPR, the Money and Pensions Service (MaPS) and the Pension Scams Industry Group (PSIG).

Most pension transfers are legitimate and can proceed with minimum intervention. However, PSIG estimates 5% of all transfer requests give trustees and scheme managers cause for concern.

Therefore, new conditions will apply on transfers out of the Scheme and the Trustee may not be allowed by law to proceed with your transfer (or you may be required to take further advice from the Government’s MoneyHelper service before the Trustee can implement your transfer request).