Implementing a cap on early exit charges for members of occupational pension schemes
Date published:
Guidance on capping early exit charges for trustees and managers of occupational pension schemes, and service providers. This guidance is effective from 1 October 2021.
From 1 October 2021 The Occupational Pension Schemes (Administration, Investment and Charges and Governance) (Amendment) Regulations (Northern Ireland) 2021 (“the 2021 Regulations”) introduce restrictions on early exit charges for those aged 55 and over and who are eligible to access the pension freedoms. The 2021 Regulations amend the Occupational Pension Schemes (Charges and Governance) Regulations (Northern Ireland) 2015 to reflect these new restrictions.
The amendments made by the 2021 Regulations also provide for the Department for Communities to issue statutory guidance on how the value of the member’s benefits is calculated for the purposes of calculating the level of an early exit charge.