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UK pension Ombudsman flooded with British Steel pension complaints

Steel News - Published on Thu, 07 Dec 2017

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FT Adviser reported that the Pensions Ombudsman has received more than a hundred complaints from members of the British Steel Pension Scheme. A spokesperson for the ombudsman said that the steelworkers complained about matters to do with the scheme, not the advice received on any pension transfers.

The spokesperson added that it is currently categorising the complaints according to the area they fall in.

The 130,000 members of the failed scheme have about three weeks to decide whether to move their defined benefit pension pots to a new plan being created, BSPS II, or stay in the current fund, which will be moved to the Pension Protection Fund.

Of the members, 43,000 are deferred, which means transferring out of their pension is also an option for them.

It is alleged that thousands of members didn't receive all the information necessary about their pensions to be able to make an informed decision on the matter.

FTAdviser reported last week that several steelworkers appeared to be transferring out their pensions after being lured by cheap deals by unregulated introducer firm Celtic Wealth Management & Financial Planning, which then referred the clients to advice firm Active Wealth.

The Work & Pensions select committee is due to question financial advisers about the advice given to steelworkers to transfer their defined benefit pensions out of the scheme.

Pensions expert and founder of Pension Playpen, Henry Tapper, and Al Rush, principal at Rutland-based Echelon Wealthcare, visited Port Talbot to speak to the scheme members and found there was little evidence of financial advisers suggesting anything other than transfers to the individuals.

Mr Tapper will be attending the Westminster hearing with two members of the British Steel Pension Scheme.

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Posted By : Nanda Koijam on Thu, 07 Dec 2017
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