New pensions blow for millions

Millions of savers faced more misery today after it emerged that members of final salary pension schemes could be prevented from transferring their assets.

Under rules drawn up by the pensions industry watchdog, laws that forced schemes to value the investments of members wishing to leave have been suspended, effectively-trapping workers in their existing schemes.

The move by the Occupational Pensions Regulatory Authority is aimed at protecting underfunded schemes.

Until now, pension trustees have been legally obliged to give members wishing to exit a transfer value within three months, and make assets available within six months.

The revised rules, says the Financial Times, are a temporary measure to prevent a run on underfunded schemes before publication later this year of a new framework for transfer values. Experts warn the new framework will mean less generous transfer values.