Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • February 2015
02

PASA identifies new pension scam

Open-access content 6th February 2015

Pension administrators of defined benefit (DB) pension schemes will be expected to play a “pivotal role” in the fight against a new pension scam, says the Pensions Administration Standards Association (PASA).

With the new pension reform coming into force in April 2015, scammers are targeting people with DB schemes to convince them switch to a defined contribution (DC) scheme. Under the reforms, only those with DC schemes will be able to withdraw their pensions as lump sums.

According to PASA, scammers have been claiming to be providing government-backed material to convince people to switch. However, the government only issued draft regulations covering the changes on 4 February. 

Geraldine Brassett, member of Policy and Strategy sub-committee at PASA, said: "We're expecting administrators to play a pivotal role in the fight against a new type of pensions scam, where advisors are already stating they are providing government-backed material to members to help them decide to transfer to a DC arrangement."

In addition, PASA highlighted the demands administrators will be facing this year around providing transfer quotations and retirement quotes for people transferring from DB to DC schemes. There will also be challenges around providing guidelines regarding the current value of former, deferred pensions alongside details of active pensions, and ensuring members seek advice prior to making decisions.

Brassett said: "We're advising administrators to be aware of possible risks for themselves and their sponsors - such as whether an automatic offer of a transfer value at retirement could be construed as an inducement by the sponsoring employer for a member to transfer out of the DB scheme in order to reduce the liability." 

This article appeared in our February 2015 issue of The Actuary.
Click here to view this issue
Filed in:
02
Topics:
Pensions
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Actuarial Analyst - Lloyd's Pricing

London (Central)
£40000 - £60000 per annum + benefits
Reference
119072

Move from Reserving/Capital to Lloyd's Pricing? Get in touch...

London (Central)
£40000 - £55000 per annum + benefits
Reference
119071

Senior Validation Actuary - Lloyd's

London (Central)
£100000 - £140000 per annum + benefits
Reference
119070
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200