Many UK pension trustees, employers and administrators with have a hard time dealing with the financial and regulatory risks posed from the coronavirus pandemic, The Pensions Regulator (TPR) has published their guidelines to help those organise how pensioners should be paid during this time.
The TPR guide focuses on how members of these pension groups are protected against heightened risk of scams and how benefits must continue to be paid to those who are members of defined benefit (DB) pension schemes.
XPS has commented on this stating “At times like these it is more important than ever to focus on members. Our pensioners are most at risk in the current climate and it is essential that pension schemes ensure that pensioners can rely on receiving their pension payments,” said Wayne Segers, Head of Pensions Solutions at XPS Pensions.
“This is a key focus of the Regulator’s statement which we support. All members need to be protected. Opportunistic scams are on the rise and we echo the Regulator’s comments on this from what we have seen. Our anti-scams team is continuing to support trustees in protecting members.”
The guide also outlines that pension savers need to be provided with support to make good financial decisions particularly with pensions savers being at great risk against scammers.
“We are closely monitoring the COVID-19 situation, and working collaboratively with government, regulators and other bodies to assess the most immediate risks to pension schemes,” TPR said in a statement.
Research from the All-Party Parliamentary Group on Pension Scams (APPG) revealed that pension savers face a greater risk of being targeted by scammers as they look into transfering their pensions during this unpredictable time and will need to be extra vigilant during the pandemic. Crowe UK, a risk advisory firm has calculated that around £6bn has been stolen from tens of thousands of savers in the past few years. With risks being high at the moment, many savers will be vulnerable after seeing the value of their pensions drop as markets have plunged in the past few weeks.