Webb announces crackdown on cash incentive offers

The government is set to take action over companies offering cash incentives to leave defined benefit (DB) pension schemes.

Speaking to delegates at the National Association of Pension Funds (NAPF) conference, pensions minister Steve Webb (pictured) said a working group - chaired by former Pensions Advisory Service chairman Margaret Snowdon - was putting together a code of practice on de-risking exercises, which would be published before next summer.

But he said he was fully prepared to bring forward legislation if he has to - noting the communications language and practice around some incentivised transfer offers and pension increase exchanges were still poor.

The NAPF said it was vital incentivised transfers were handled "responsibly and in the best interests of employees".

Chief executive Joanne Segars said: "There is no place for bad practice. People can't be left facing a difficult retirement when they've spent years building up a pension.

"The NAPF's members will have a central role to play in drawing up the new Code of Practice and in ensuring it is followed."