TPR publishes guidance for trustees on Pension Wise appointments

The rules, which come into force in June, require trustees to offer to book a Pension Wise appointment — or give details of how to do so if they decline the offer or the scheme is unable to book a suitably convenient appointment — for members who want to access their flexible pension benefits, or transfer their benefits to another scheme to access them.

“This must include a statement confirming the nature and purpose of Pension Wise guidance and you must offer to book an appointment,” the guidance stated.

TPR noted that the application to access benefits cannot proceed until the scheme has confirmation that the member has received guidance or opted out from receiving it.

“It is therefore good practice to offer to book a Pension Wise appointment as early as possible in the process.

“Additionally, trustees may wish to consider encouraging members to take some time to fully consider their decision before confirming that they wish to opt out,” the guidance added.

Trustees must also record whether a member has either received guidance or opted out, but the regulator highlighted that as long as the criteria detailed in the guidance are fully met, schemes can choose which forms of communication best suit their members.

In a blog post published in January, David Fairs, executive director of regulatory policy, analysis and advice at TPR, welcomed the introduction of the new rules, saying they will create a partnership between freedom and guidance “as synonymous as Laurel and Hardy, Cagney and Lacey, or Ant and Dec”.

“We know that these changes will require changes in scheme processes — which is why I hope trustees along with their administrators will be preparing for them now,” he said at the time.

“Guidance and pensions should go together like fish and chips. I hope trustees will recognise this vital link so that savers benefit from receiving the right guidance, at the right time and ultimately make the right decisions.”