With the collapse of Carillion hitting the headlines, the Pensions and Lifetime Savings Association (PLSA) warns consumers that they should be careful of companies who seek to capitalise on this issue by encouraging people to transfer out of defined benefit (DB) pension schemes without due consideration.
Joe Dabrowski, Head of Governance and Investment at the PLSA explains:
“One in six (17%) pension holders in the UK have been contacted by a company – other than their provider – to discuss making changes or transferring their pension1. And following the collapse of Carillion, we have already seen warning signs that scammers may be seeking to exploit DB scheme members’ fears about their future.
“We call upon Regulators to act urgently to ensure that members are protected, and to take the strongest possible action against unscrupulous companies looking to take advantage of savers. Transfers should only be undertaken if they are in the best interest of the scheme member and with the right level of guidance.
“Scheme members who are concerned about the future of their scheme should gain comfort from the existence of the Pension Protection Fund (PPF). This Pensions Lifeboat already looks after more than 300,000 member’s pensions and has the financial strength as well as experience to deal with any claims resulting from companies’ liquidation.”
Lee Blackwell, Head of Media and PR, Pensions and Lifetime Savings Association
T: 020 7601 1726, M: 07713 073023, E: [email protected]
Kathryn Mortimer, Press Officer, Pensions and Lifetime Savings Association
T: 020 7601 1748, M: 07901 007713, E: [email protected]
Eleanor Carric, PR Manager, Pensions and Lifetime Savings Association
T: 020 7601 1718, M: 07825 171 446, E: [email protected]
1. PLSA Pension Scams Research - 2,004 nationally representative UK adults (aged 18+) where interviewed by Populus between 28 December 2017 and 02 January 2018.
NOTES TO EDITORS:
We’re the Pensions and Lifetime Savings Association; the national association with a ninety year history of helping pension professionals run better pension schemes. Our members include over 1,300 pension schemes with 20 million members and £1 trillion in assets, and over 400 businesses. They make us the voice for pensions and lifetime savings in Westminster, Whitehall and Brussels.
Our purpose is simple: to help everyone to achieve a better income in retirement. We work to get more money into retirement savings, to get more value out of those savings and to build the confidence and understanding of savers.