P&O pension scheme members urged to exercise caution
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Regulators are urging current and former employees of troubled ferries operator P&O not to make any quick decisions about their pension.
The Financial Conduct Authority, the Pensions Regulator and the Money and Pensions Service have issued a joint statement raising their concerns “given the heightened risk of pension transfers following recent redundancies”.
The FCA and TPR are warning that transferring out of a defined benefit pension scheme is unlikely to be in the best interests of most people. TPR is in discussions with the trustees of the associated pension schemes, and has asked them to closely monitor transfer requests. Trustees were also asked to send a joint letter from FCA, TPR and MaPS warning of the risks of transferring to any savers who ask for a cash equivalent transfer value.
The regulators are saying that those concerned about their pensions, or who are considering transferring out, should seek guidance from MoneyHelper and are pointing them to their ScamSmart website.
P&O scheme members are advised to check if any financial adviser they are considering using is on the FCA’s register and that their services include advising on pension transfers and pension opt-outs.
The Pension Schemes Act 2021 introduced a system of red and amber flags, giving trustees the power to refuse transfers where they suspect a scam, while the FCA banned contingent charging in 2020, a practice widely thought to be incentivising advisers to advise in favour of a transfer.
P&O Ferries business hit the headlines when its Dubai-based owner DP World decided to sack all 800 staff at no notice and replace them with cheaper agency workers, breaking employment rules that would require a consultation. Several defined benefit pension schemes are linked to the company.
