Ur­gent ac­tion needed over pen­sions scan­dal, say MPS

The Courier & Advertiser (Angus and The Mearns Edition) - - NEWS POLITICS -

A ma­jor pen­sions mis-sell­ing scan­dal is erupt­ing ac­cord­ing to MPS, who said Bri­tish Steel Pen­sion Scheme (BSPS) mem­bers had been “shame­lessly bam­boo­zled”.

The Work and Pen­sions Com­mit­tee said it had re­ceived wor­ry­ing ev­i­dence about fi­nan­cial ad­vice pro­vided to mem­bers of the BSPS.

Mem­bers had “been ex­ploited for cyn­i­cal per­sonal gain by du­bi­ous fi­nan­cial ad­vis­ers in tan­dem with par­a­sit­i­cal so-called ‘in­tro­duc­ers”, it said. Steel­work­ers yet to reach pen­sion age were en­cour­aged to trans­fer their de­fined ben­e­fit pen­sion rights into a de­fined con­tri­bu­tion pen­sion, known as mak­ing a DB trans­fer.

DB trans­fers may of­fer read­ier ac­cess to cash and can be in the in­ter­ests of peo­ple with a low life ex­pectancy.

But trans­fer­ring away from a DB pen­sion or a “fi­nal salary” scheme is not usu­ally in some­one’s in­ter­ests, the com­mit­tee said – as it means giv­ing up gen­er­ous and sta­ble ben­e­fits in favour of a riskier in­vest­ment.

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