Current and former employees of P&O are urged not to make any quick decisions about their pension following recent media reports.
The Financial Conduct Authority (FCA), the Pensions Regulator (TPR) and the Money and Pensions Service (MaPS) are raising their concerns given the heightened risk of pension transfers following recent redundancies. The FCA and TPR warn that transferring out of a defined benefit pension scheme is unlikely to be in the best interests of most people.
Savers concerned about their pensions, or who are considering transferring out, should seek impartial guidance from MoneyHelper, run by MaPS.
Current and former employees of P&O seeking financial advice should first check if the adviser is on the FCA’s register and their services include ‘advising on pension transfers and pension opt-outs’. The FCA has information on what to expect when seeking advice on its website. Savers can find out how to spot and avoid a pension scam on its ScamSmart pages.
The FCA regulates pension transfer advice and has taken significant action where it considers that firms have not met the standards of advice and behaviour expected for financial advice. The FCA is repeating its guidance to those providing advice on pension transfers that they ought to start from a position that a transfer is unlikely to be in most people’s best interest.
TPR is in discussions with the trustees of the associated pension schemes in its role to protect savers. The trustees have been 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.
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Notes to editors
- TPR is liaising with the trustees of pension schemes associated with P&O Ferries to closely monitor transfer requests.
- The Pension Schemes Act 2021 introduced a system of red and amber flags, giving trustees the power to refuse transfers where there’s a heightened risk it may be part of a scam. TPR published guidance helping trustees understand their new powers to halt suspicious transfers.
About the Money and Pensions Service
The Money and Pensions Service (MaPS) is here to ensure every person feels more in control of their finances throughout their lives: from pocket money to pensions. When they are, communities are healthier, businesses are more prosperous, the economy benefits, and individuals feel better off. MaPS delivers free and impartial money and pensions guidance to the public through MoneyHelper, which recently brought together legacy services the Money Advice Service, The Pensions Advisory Service and Pension Wise.
MaPS is working to make sure the whole of the UK understands that financial, physical and mental health are all deeply connected. MaPS’ role is to connect organisations with the shared purpose of achieving the five goals set out in the UK Strategy for Financial Wellbeing.
MaPS supports innovation so that everyone can use the most effective methods to help people feel more in control of their money, targeted to those most in need and inclusive of people from all backgrounds. MaPS is an arm’s-length body sponsored by the Department for Work and Pensions (DWP).
For further information visit the Money and Pensions Service website: www.maps.org.uk The public can get free guidance about their money and pensions: www.moneyhelper.org.uk / 0800 138 7777.