Members aged 50 or over requesting to transfer or take defined contribution benefits may need to get guidance.
When members aged 50 or over request to transfer out or take any defined contribution benefits, they may need to get free guidance on their retirement options from Pension Wise before Railpen can go ahead with their application.
The government introduced new measures from June 2022. They require pension scheme members to take guidance from Pension Wise – or confirm they have opted out of such guidance – before they can take payment of, or transfer out to take, any defined contribution savings.
The measures aim to help pension scheme savers prepare for their retirement and make better informed decisions about the options available to them.
This will apply to members if they have funds in the Industry-Wide Defined Contribution (IWDC) Section of the Railways Pension Scheme, or have any BRASS or AVC Extra funds, as these are all defined contribution savings.
You don’t need to anything differently. This article is for information only in case your employees have questions about the stronger nudge guidance.
What is Pension Wise?
Pension Wise is a government service run by MoneyHelper. It offers free, impartial guidance about defined contribution pensions and can help scheme members understand the options available when they retire.
Members can book a Pension Wise appointment if they are aged 50 or over and have defined contribution benefits such as in the IWDC Section, BRASS or AVC Extra.
How will members know if they need to seek guidance from Pension Wise?
Railpen will get in touch with members to let them know if the new measures apply to them. The member will then need to complete a form and return it to us.
If a member does not want to take the free guidance, they will need to ‘opt out’ and let Railpen know.
Copies of the ‘Retirement guidance form’ and Transfer-out guidance form’ are available in the Forms section of the member website (under ‘Resources’).
How can members get a Pension Wise appointment?
If a member wants to book an appointment, they can do this online at
www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise/book-a-free-pension-wise-appointment or by calling 0800 100 166.
Pension Wise appointments can take place over the phone or in person.
Further support
Videos explaining members’ options when they take or transfer their benefits are available on the member website in the ‘Your retirement options’ area of the Video Library (under ‘Resources’).