On the go: Pension providers and trustees “must step up and protect savers using every possible means”, as the vulnerability of individuals to scams has increased due to the coronavirus pandemic, the Pensions Regulator chief executive has warned.
In a blog published on Wednesday, Charles Counsell repeated that the watchdog, alongside other regulators, have issued “guidance focusing on the heightened risk of members being targeted by scammers during the pandemic”.
“As people worry about the pandemic’s impact on their pensions and investments, scammers are also looking for an opportunity to strike,” he noted.
Mr Counsell stated that the pandemic may mean trustees need more time for transfer requests.
“This may be because they need to reassess how transfers are calculated or because they need to prioritise making pension and bereavement payments.
“I want to reassure trustees of defined benefit schemes they’ll have the time they need to deal with cash equivalent transfer value requests.”
He also iterated that the Pensions Ombudssman will take TPR guidance into account, as well as the impact of the coronavirus generally, when determining whether trustees took reasonable action.
“Now industry must step up and protect savers using every possible means,” he argued.
Mr Counsell added that providers and trustees are the first line of defence in protecting savers from pension scams, and “also have a key role to play in ensuring savers make informed choices”.
“Our easements and the FCA’s guidance should allow providers and trustees to concentrate on the matters that matter most, like protecting people’s pensions.
“So, our message to savers is crystal clear – avoid hasty decisions about cash that’s taken a lifetime to build. And to trustees and providers, we urge you to get behind this vital message.”
