Protecting your pension from scams
In November 2021, the Pension Schemes Act 2021 came into power. This legislation gives trustees greater powers to help combat pension scams and protect people’s hard-earned benefits.
Before approving a transfer, Trustees must look at two conditions:
- Is the receiving scheme a safe place to transfer? Personal pensions will no longer be seen as a safe place to transfer your pension.
- The second requires schemes to look for specific warning signs of a pension scam.
Provided at least one of the conditions has been met, a transfer can proceed.
The Trustees of the Plan are passionate in doing their part in helping you protect your pension benefits from the threat of scams. Unfortunately, the threat of scams has only increased over the last few years. This is partially the reason why the Audit Commission Pension Scheme signed up to XPS Administration’s Pension Scam Identification service.
How the Pension Scam Identification Service works
If you ask to transfer your benefits out of the Scheme, XPS will contact you and ask you some questions to help identify whether you are at risk of becoming the victim of a pension scam. This adds an extra layer of protection for you as a member. The Scheme pays the cost of this service, and it shouldn’t delay your transfer.
Never take investment advice from the company that contacted you, or an adviser they suggest, as this may be part of the scam. Use an independent financial adviser. You can find one on www.moneyhelper.org.uk and searching ‘find an adviser’.