The Government will “take action” over companies offering employees cash incentives to leave final salary defined benefit schemes, the pensions minister Steve Webb announced yesterday at the NAPF Conference in Manchester.

Joanne Segars, chief executive of the National Association of Pension Funds (NAPF), said: “It is vital that incentivised transfers are handled responsibly and in the best interests of employees. There is no place for bad practice.People can’t be left facing a difficult retirement when they’ve spent years building up a pension.

“The NAPF’s members will have a central role to play in drawing up the new Code of Practice and in ensuring it is followed. We look forward to contributing to this work.”