Pensions - Articles - Omission of QROPs from consultation could hamper members

 Ian Neale, Director at Aries, said: “The Government consultation on ways the industry can help protect against pensions scams is indisputably welcome, as the impact of a fraudulent transfer is not just immediate financial loss, but the decimation of a member’s entire retirement planning. Overseas transfers can represent a concerning area for scams, but there are also legitimate transfers abroad that should not be restricted by blanket legislation.

 “There are a great number of people who have come to the UK from overseas to work and have spent their adult life earning and building up pensions savings. Should they wish to return to their homeland to retire, the proposed legislation would not give them an automatic right to transfer their funds abroad – which would undoubtedly represent an easier and cheaper way for them to take their money in retirement. Others affected could also include people working overseas who have been offered generous scheme terms by their new employer or private scheme and would be much better off in retirement if they were allowed to add their old UK benefits to their total.”

 Neale added: “The consultation provides a recommendation that the only statutory rights to transfer should exist where there is an employment link, an FCA-regulated firm or a master trust arrangement – at first glance an appropriate position. But giving people the chance to make savings choices that work for them and enable them to have the best retirement future should remain paramount. Instead of removing overseas transfers from the statutory list, perhaps the focus should be on improving the assessment of overseas schemes to separate the scams from the safe destinations.”