Pension inducements could affect means-testing benefits

An expert panel speaking at a Punter Southall discussion on the ‘Nature of the Pensions Promise’ suggested the issue of incentives depends mainly on the financial understanding of the member. Derek Sloan, partner at law firm Allen & Overy and chairman of the Association of Pension Lawyers (APL), says it seems there are currently two ways in which employers are offering incentives. He says one is the enhanced transfer where the original transfer value is say £100, but the employer offers an enhanced value of £110 which stays as a pension transfer, while the alternative is to take the £10...