Pension schemes can help their members avoid pension fraud by using best-in-class administration, according to Broadstone.
According to recent Financial Conduct Authority (FCA) data, only 7 per cent of people got unsolicited pension-related proposals in the previous year, down significantly from 20 per cent in 2017 and 16 per cent in 2020. As a result, from 10.2 million in 2017 to 3.7 million in 2022, 6.5 million fewer adults would be exposed to potential scams.
But worries about undetected scams continue, especially among savers who may have unintentionally fallen victim. The Pensions Regulator (TPR) has increased its efforts to include trustees and administrators in the fight against fraud as a result.
TPR recently described how it uses an administrator relationships tool to interact with administrators directly in order to protect savers and handle any potential issues they might face.
Additionally, TPR has defined particular duties for trustees, requiring them to carry out certain checks when considering pension transfer requests and directing members to consult Pension Wise for unbiased advice. Administrators are typically given these roles because they frequently have a more thorough awareness of the pension landscape and may tell trustee clients of any warning indications, acting as the first line of defence.
Broadstone head of pensions administration Gavin Giles says: “Trustees and administrators have a vital role to play in protecting pension savers and TPR is right to up the ante on the industry taking a more proactive stance.
“For too long administration has been seen as a necessary cost by schemes, but investing in top-quality standards will have positive consequences for their members. We must keep banging the drum for administration until schemes truly recognise its return on investment at scheme level and role in helping members achieve good outcomes.”
