“We welcome the new voluntary code of practice on incentivised exercises undertaken by employers to reduce defined benefit pension scheme liabilities. Reducing risks on final salary pensions is a priority for many manufacturers and this code will help all stakeholders be clearer about what is and is not acceptable practice, making the task more predictable.
“It’s also good news that the Pensions Ombudsman and the Financial Ombudsman Service support the code and will take account of it when dealing with any complaints relating to incentive exercises. But at the same time, we now need the Pensions Regulator to make clear how it will revise its own guidance in the light of the code and give industry the clarity and consistency that it needs.”