The Pensions Regulator

Key points

1. An inducement is where an employer offers scheme members a financial inducement to transfer out of a defined benefit (DB) occupational pension scheme or to accept a reduction in benefits.
2. This guidance is for trustees, scheme members, managers of DB schemes and employers who sponsor DB schemes. It will also be of interest to independent financial advisers who offer advice in the area of transfers to and from DB schemes.
3. Trustees and employers must give scheme members full and proper information so that members fully understand the implications of transferring out of a DB scheme.
4. Trustees should consider carefully and apply a high level of scrutiny to all inducement offers.