NEWS   |    May 4, 2022

Associate Danyal Enver comments in Pensions Age on certain DB schemes being subject to the ‘stronger nudge’ requirements

Some defined benefit schemes will have to comply with the DWP’s new ‘stronger nudge’ regulations, specifically those with defined contribution elements built in.

The ‘stronger nudge’ regulations, due to come into force on June 1, were targeted primarily at DC schemes. An LCP pensions bulletin on April 28 has now confirmed that certain DB schemes will be subject, as the new rules apply at the benefit level, rather than a scheme level.

Danyal Enver commented:

“The ‘stronger nudge’ requirements are fast approaching coming into law, despite a few critical consultation responses. It is not just DC schemes that need to worry about this, but also hybrid schemes and those DB schemes with additional voluntary contributions, as the requirements will apply to those benefits and therefore to those schemes.

“While DC schemes will be able to adjust the process they follow when any member requests access to their flexible benefits, the challenge for hybrid schemes and DB schemes with a DC element, will be in assessing each member request to check whether it applies to a DC element. Such schemes need to stay alert and make sure they don’t get caught out by this as the stronger nudge is benefit specific, not scheme specific.”

Read Danyal’s comments in Pensions Age.

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