Pension savings will be better protected under the new plans announced by the Government this week. In efforts to fight pension scams, the Government has made new proposals that do not require a clear link between a saver and the Small Self-Administered Scheme (SSAS) to which they are transferring.
The Department for Work and Pensions (DWP) described pension scams as “one of the most damaging forms of financial fraud”. Criminals often trick savers into transferring all of their retirement funds into deceptive schemes, leaving victims with no way of getting their money back. But now the Government changes will make it harder for fraudsters to get their hands on people’s hard-earned cash.
Torsten Bell MP, Minister for Pensions, said: “Pension scams can rip away not just people’s savings, but the retirement they are looking forward to. This Government is determined to stay one step ahead of criminals who seek to exploit savers.
“Too often we see fraudsters trying to trick workers into transferring their savings into bogus pensions. We are stepping in to automatically block transfers where the warning signs are flashing red.”
DWP said that Tuesday’s (June 9) consultation was the first step in a wider Government programme to tackle pension fraud. Pension Scams Action Group (PSAG) is also working alongside the Government, with further measures, including potential new laws, being developed this year.
Gaucho Rasmussen, Executive Director of Enforcement & Executive General Counsel at The Pensions Regulator (TPR), on behalf of the Pension Scams Action Group (PSAG), said: “Fraud wrecks lives – and tackling it demands strong, coordinated action.
“Through the Pension Scams Action Group, which TPR leads, we are working closely with the DWP, law enforcement, the pensions industry and other partners to identify emerging threats and stop fraudsters in their tracks.
“The targeted safeguard proposed is an important step forward in protecting savers. We urge trustees and administrators to have their say.
