Staying calm under pressure

January 30th 2009

Money Purchase Investors
1. It’s important that members carefully review their pension and decide whether they need to make changes - e.g. to their investments, contribution rates or retirement date.
2. Trustees of trust based schemes should refer to the Regulator’s guidance on member communication and make sure that members have full knowledge of their options.
3. Members should be prompted to review their position in light of the current circumstances.
4. Trustees should make sure ‘clear and appropriate’ processes are in place for members approaching retirement’.

The Regulator’s main message is to remain calm. For Final Salary schemes, ongoing monitoring of scheme investments and the employer covenant should be happening anyway but there may be a need to be more pro-active in current times. For Money Purchase schemes, trustees should be contacting their members and encouraging them to review their pension provision in case anything needs changing.

The Regulator promises to keep the situation under review and will publish further statements if required. Watch this space.