In the third of a five-part series of articles for PP, pensions minister Guy Opperman sets out how impending legislation will help crackdown on 'crooks' scamming people out of their pensions.
Pension pot scammers are the lowest of the low, and the powers within the Pension Schemes Bill, combined with existing measures, will help to crack down on these callous crooks.
While it is vital people have the freedom to do as they wish with their pension pots, it would be remiss if we stood by while unscrupulous scammers fleeced them of financial security in later life.
Among the measures introduced in the bill are proposals to enable trustees to prevent a transfer in certain circumstances - such as the transfer raising ‘red flags' triggered by who is involved in the transfer.
We will also be introducing other circumstances where the member will be directed to guidance or information, and prove they have taken it before the transfer is allowed to go ahead.
This will put trustees in the driving seat in relation to permitting transfers to proceed.
And these protections will be part of a suite of measures to protect consumers from pension scams including the ramping up of communications with those over-50 about the choices they need to make ahead of retirement.
Organisations such as The Pensions Advisory Service and Pension Wise are able to offer impartial information and guidance to ensure savers are aware of the potential pitfalls of pensions transfers - we encourage all savers to make use of these free services.
The government, regulators and enforcement agencies will continue to work together to shield savers from these callous crooks, allowing people to plan for their retirement knowing there are mechanisms in place to protect them.
No-one should lose the retirement they want because of scams, so it is only right that savers can plan ahead knowing their hard-earned pension pot is safe.
Guy Opperman is pensions and financial inclusion minister
Other articles in this series
In a five-part series of articles for PP, pensions minister Guy Opperman talks about various aspects of the Pension Schemes Bill, which is expected to be passed into law shortly
The Pensions Regulator (TPR) has failed to assuage concerns over its enhanced criminal sanctions regime with the industry continuing to call for clarity.
Matthew Swynnerton explores the impacts of the Pension Schemes Act 2021
Geoff Egerton looks at how the criminal sanctions regime will impact the pensions industry
Government proposals to employ a charge cap smoothing mechanism in a bid to incentivise defined contribution (DC) pension scheme investment in illiquid assets could have the opposite effect, says the Society of Pension Professionals (SPP).
Three people have appeared in court in connection with an investigation into pension fraud totalling nearly £14m.