United Kingdom


  • Service: Tax, Pensions
  • Type: Business and industry issue
  • Date: 14/03/2014

Member options exercises – market activity picks up again 

“Confidence in member option exercises is continuing to grow, with sponsors and scheme trustees seeing the benefits of exercises in reducing the future financial risks of schemes whilst providing members with additional benefit flexibility than traditionally available in a defined benefit pension scheme.”


Alan Pentland, Pensions Partner at KPMG in the UK

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The Budget 2014 is potentially game changing for member options. Activity has been increasing and the government’s suggestion that they will not provide defined benefit (DB) members with the same flexibility as defined contribution (DC) members could create a further short-term surge.


The June 2012 Industry Code of Practice provides a clear framework for implementing exercises and, mainly, this Code is being followed for all exercises.


The update provides details of more than 15 exercises completed recently, covering more than 100,000 members.


We also provide commentary on market trends for Pension Increase Exchange, Enhanced Transfer Value and Flexible Retirement Option (or Total Pension Increase Exchange) exercises.


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Alan Pentland

Alan Pentland


KPMG in the UK

0121 609 6002

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