Pension Schemes Act 2015 has provided a number of requirements.

Benefit categories within a scheme are now put into two categories:

1. Flexible benefits (money purchase, cash balance and any benefit calculated by reference to a fund)
2. Safeguarded benefits (DB Schemes)

The requirement for advice arises because the conversion of safeguarded benefits into flexible benefits is a regulated activity

Should a member consider transferring safeguarded benefits they must take ‘independent’ advice. An independent person is someone not linked to the employer or trustees of a scheme. They must also be authorised meaning the person has the correct permissions to carry out a regulated activity, which in this case is a pension transfer specialist.

Should the member be in a scheme with both parts, they can choose to transfer all or one part of their pension.

If the CETV is less than £30,000 there is no need to get advice. This limit is applied per CETV.