The guise of the much-talked-about guidance guarantee is ever-changing. Last month it changed again with the announcement that the Citizens Advice Bureau would be handling the face-to-face aspect of the guidance.
After delivering sweeping changes to pensions in March, chancellor George Osborne said in his Budget speech that “everyone will be offered free, impartial, face-to-face advice” on their retirement options.
This was quickly changed to guidance rather than advice, and face-to-face will not necessarily mean in person – it could be over the phone, or online via Skype-like software. This has been confusing, not only for schemes, attempting to signpost the guidance, but also for members poised to retire in April.
Illustration by Ben Jennings
Last month the Treasury made a shock announcement that the CAB would be handling the in-person part of the guarantee, with The Pensions Advisory Service covering the phones, and leaving the hotly tipped Money Advice Service relegated to overseeing the online infrastructure.
This announcement was made just a few days before evidence was to be given for the pensions bill in parliament. Surprisingly, no one from the CAB gave evidence. Instead, a representative from TPAS and two reps from the jilted MAS were quizzed by MPs who were seemingly unaware of the Treasury’s change. The cringe-worthy questioning was perhaps indicative of the disorganisation playing out behind closed doors.
During the evidence, Joanne Segars, chief executive of the National Association of Pension Funds, said the association has “101 known uknowns” that need to be clarified about the reforms before they can be implemented.
MPs looked taken aback, with some saying the NAPF and other industry bodies should be providing answers not questions. Parliament asking the industry for answers to reforms that have not clearly been laid out is like playing a game and not knowing the rules.
With less than six months to go until delivery, it is hoped the industry and the government can come to a clear conclusion, so that those retiring in April 2015 will get as fair a service as those retiring a year later.
Lisa Botter is the deputy editor of Pensions Expert. You can follow her on Twitter @lisa_botter and the team @pensions_expert.