The Pensions and Lifetime Savings Association (PLSA) has commented on the Government’s response to the Review of the Fraud Compensation Levy Ceiling 2021.
Joe Dabrowski, Deputy Director of Policy at the PLSA said: “The PLSA fully supports victims of pension scams and shams being fairly compensated as part of our mission of better retirement outcomes for everyone. It is vital that we have an effective regime to protect members and ensure they are compensated when victims of dishonest behaviours.
“However, the new rates confirmed by the Government for 2022/23 will amount to a more than £5m per annum increase for some schemes, give very little notice to schemes and – because they ask Automatic Enrolment Master Trusts to pay a disproportionate amount in contributions – will ultimately see the costs borne unfairly by savers with the lowest balances.
“The PLSA has repeatedly argued that the fraud compensation regime is not fit for purpose and requested a one-year delay to the levy hike to allow time for a proper review to build a more robust and future-proofed compensation regime that offers protection for all pension savers.
“We are disappointed the Government has seen fit to ignore these concerns and follow through with the unfair increase, despite near universal opposition amongst respondents.”
Mark Smith, Senior PR Manager
020 7601 1726 | [email protected]
Steven Kennedy, Senior PR Manager
020 7601 1737 | 07713 073024 | [email protected]