Is this the end of member options exercises?

Is there any life left in traditional member options exercises following the significant changes in the pensions landscape over the past couple of years?

Defined benefit (DB) pension schemes have always had member options built into their design. ‘Traditional’ member options activity has typically focussed on providing members with new options, improving the support to take existing options (particularly transfer values) or a combination of both. At least one of the aims of doing so is normally to achieve a financial benefit for the scheme.

However, transfer value activity has fallen over the last 12 months and remains at very low levels compared to recent years (see Transfer value experience – Q3 2023 briefing). Bulk cash equivalent transfer value (CETV) exercises are virtually non-existent. Sixty-year-olds who were offered a transfer value of £200k at the start of 2022 are now being offered around £100k in exchange for the same benefits.

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