Pension Liberation Fraud — the sting in the tail for pension trustees
According to the Pensions Regulator (tPR), pension liberation fraud is on the increase. It describes these arrangements as ones where there is a promise of cash before age 55 and where a significant tax charge is likely to be incurred. These arrangements may not actually be illegal in every case but even where the receiving arrangement is legal, members might nevertheless be persuaded to transfer their benefits to their (considerable) detriment.
While most pension scheme trustees are likely to applaud tPR’s efforts in ensuring that members do not fall victim to these scams, those same trustees might not appreciate the full extent to which tPR expects them to play their part in protecting their members. Pension scheme trustees and administrators are usually likely to report any concerns they have about a receiving scheme to tPR if they come across something that appears to be suspicious during the transfer process.
But would trustees and administrators expect to take proactive steps to find out whether the receiving arrangement could be a liberation scheme? …
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