///Insurance & Pensions
Insurance & Pensions2022-06-15T09:19:00+00:00

FAQs

If you to know more about RFL and what we do, our most frequently asked questions are given below.

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Pension schemes will be legally obliged to undertake rigorous reunification process in line with industry best practices to reunite owners with their assets before they transfer a pension product. This will increase the chances that people will be reunited with their assets. The dormancy definition will also reflect the fact that pensions are long-term assets. They will only become dormant and eligible for transfer into the Scheme once the member has died and no next of kin can be identified.

If a beneficiary comes forward after a pension has been transferred, they will always be able to access their money even if their pension pot has been classified as dormant and transferred. They will notice no difference in the transfer process, and the provider will transfer funds within the usual timeframe.

Pension schemes will be legally obliged to undertake rigorous reunification process in line with industry best practices to reunite owners with their assets before they transfer a pension product. This will increase the chances that people will be reunited with their assets. The dormancy definition will also reflect the fact that pensions are long-term assets. They will only become dormant and eligible for transfer into the Scheme once the member has died and no next of kin can be identified.

If a beneficiary comes forward after a pension has been transferred, they will always be able to access their money even if their pension pot has been classified as dormant and transferred. They will notice no difference in the transfer process, and the provider will transfer funds within the usual timeframe.

The consultation held in 2020 to expand the Scheme cited ongoing changes in the pensions landscape, including the introduction of pensions dashboards. Many responses asserted that the dashboards would interact positively with the Scheme. Both initiatives have the primary aim of reuniting owners with their assets, and the dashboards will make it even more likely that only genuinely dormant pension products that will not be reclaimed would be transferred into the Scheme.

The majority of respondents to the consultation had no objections to excluding insurance and pension products that do not crystallise to cash at this time. Some recommended that they be legislated for now, even if the intention is to phase them in at a later date. Others highlighted cases where an owner is almost certainly deceased, but the participant has not been notified of their death nor received a death claim. These respondents recommended that assets in scope with owners that would be at least 120 years old should be included in the Scheme. The government supports the latter recommendation. In all other cases, the government has decided to exclude insurance and pension products that do not meet the test of crystallising to cash from legislation at this time.

The government’s wishes are to ensure that FCA rules for paying away unclaimed assets and the Scheme operate in a similar way, allowing potential participants to choose between the two freely. As such, the government is keen to work with the FCA and RFL to ensure that both schemes continue to mirror each other in their approach to dormancy.