Steel workers at mercy of ‘vultures’

MPs slam handling of pensions shake-up 7778.6 Oil

A CATALOGUE of failures allowed “vultures” to prey on steelworkers and their pensions, a damning report has found.

Ministers and regulators are accused of allowing shady financial advisers to “bamboozle” members of the British Steel Pension Scheme in what MPs called a “major mis-selling scandal”.

It followed Tata Steel’s plan to shut their 124,000-member defined-benefit scheme, claiming it threatened the future of the company and the Port Talbot plant in South Wales.

Scheme members were given a choice of moving to a new final-salary scheme, going into the Pension Protection Fund or switching to a defined-contribution scheme – known as a DB transfer. All options left members worse off. A report from the Commons Work and Pensions Committee said members were “woefully under supported”, singling out the Pensions Regulator.

Just 18 scheme staff were available to handle detailed queries and a helpline was opened just a fortnight before a crunch deadline.

It allowed “dubious” firms – aided by “parasitical introducers” – to target members.

Steelworkers yet to reach pension age were encouraged to opt for DB transfers, with advisers pocketing fat fees.

Since last March, 2600 members have transferred SHARES in construction giants Galliford Try slumped 19 per cent yesterday after they asked investors for £150million to cover shortfalls on a contract they had with collapsed rival Carillion to build a bypass in Aberdeen. £1.1billion, with average transfer values of £400,000, but 20 people transferred more than £1million each.

Most members opted for the new final salary scheme. But thousands of others are out of pocket by going into the Pension Protection Fund.

The report criticised ministers for blocking “deemed consent” that could have secured them a better deal.

Frank Field, chairman Work and Pensions Committee, said: “Once again we find the Pensions Regulator fiddling while Rome burns, when they should have seen this rip-off coming.”

Jack Dromey, Shadow Pensions Minister, branded it a “national scandal”. He said: “It has long been clear that ministers were asleep at the wheel.”

The Pensions Regulator highlighted the £550million obtained for the new scheme and the action they took against unscrupulous advisers.

It said: “We note the committee’s recommendations.” USED car sales dropped 1.1 per cent to 8.1million last year, with South East England the second-hand dealer capital and silver the most popular colour motor, said the Society of Motor Manufacturers and Traders. of the