Tough crackdown on pension scams
TOUGH new measures that protect pension savers and help stop scammers become law today.
The regulations mean suspicious transfers can be saved from fraudsters as pension trustees and scheme managers get new powers to intervene.
Minister for Pensions Guy Opperman said: “We are tackling the scourge of pension scams to safeguard pensioners’ hard-earned savings.”
The rules mean pensioners’ requests to move their money would be blocked if suspicious.
They could be stopped if savers have had an unsolicited approach to access or transfer their savings over social media.
Such contact would trigger a warning, which would mean pension trustees or scheme managers could halt it until more is known.
Pensions Ombudsman Anthony Arter said: “Having witnessed the damage that pension scams can inflict on an individual’s retirement, I welcome the new transfer regulations to make them safer.”
Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said: “Scammers rob people of their hard-earned retirement savings and for too long schemes have been powerless to stop them. “These measures are a welcome step forward in protecting scheme members by giving schemes the power to stop transfers or refer members for guidance if they have any suspicions.”
The Government will review the new approach within 18 months to ensure it remains as effective as possible in targeting the evolving methods used by con artists.
Nicola Parish, of the Pensions Regulator, said: “We welcome these new regulations, which further empower trustees to act as the first line of defence against criminals.
“We urge all trustees and pension providers to take note of these new rules and continue to play their part in stopping fraud.
“The pension industry can continue to demonstrate its commitment to stopping the scourge of scammers by joining our pledge campaign.”