Losses on DB transfer from other schemes are typically much higher.
As such, assessing a suitable reserve for a book of non-BSPS transfer advice requires specialist support to identify the various factors that influence pensions redress.
In summary
There is no doubt the BSPS situation has shone a light on DB pensions redress, and this is a helpful development to the extent that it has generated industry scrutiny of the redress calculation methodology.
It will now be important to watch developments in this area and to consider how these may impact on wider pensions redress.
Sarah Abraham is a consultant actuary, head of redress solutions at OAC
OAC are actuarial consultants who offer a range of specialist services relating to pensions redress, including compensation calculations, training on the factors affecting the magnitude of redress and assessing redress risk.
