In the last year £81.5m was paid out to more than 2,000 members across 58 pension schemes who were defrauded by scammers.
The figures were released by The Pensions Regulator (TPR), the Fraud Compensation Fund (FCF), The Pensions Ombudsman (TPO) and Dalriada Trustees.
The bodies said more payments will follow for other victims as a result of the joint-agency initiative, which follows a High Court ruling in 2020 clarifying that occupational pension schemes set up as part of a scam could potentially be eligible for FCF compensation.
This High Court ruling was secured by Dalriada Trustees who were appointed by TPR to manage these particular defrauded schemes.
Those compensated include victims of the Friendly Pensions Ltd fraud, which saw Susan Dalton and Alan Barratt convicted and jailed in 2022 for their part in the criminal enterprise that stole £13.7m following a prosecution by TPR.
TPR and its Pension Scams Action Group partners are working closely to detect future emerging threats and take action to prevent harm to savers.
TPR executive director of regulatory compliance Gaucho Rasmussen says: “We know how devastating the impact of pension fraud can be and hope this compensation will help members of the affected schemes to rebuild their lives.
“We and our partners have identified further opportunities to bring compensation to victims of historic scams – and more payments are to follow later this year and in 2026.
“But prevention remains paramount. Compensation is far from guaranteed for all those impacted by suspected fraud, as not all types of pension schemes used by fraudsters meet the eligibility criteria.”
He adds: “We urge the pensions industry to be vigilant and report any suspicions to Action Fraud. Every report counts, providing the intelligence we need to stop fraudsters in their tracks.”
Dalriada Trustees managing director Adrian Kennett adds: “We are pleased to have been involved in securing this outcome for the members of these schemes, who now have access to their pensions.”
Additionally, death benefits totalling £1.5 million have also been paid.
Other professional trustee firms appointed by TPR to pension schemes with scam characteristics are also similarly pursuing claims through the FCF.
Sara Protheroe, chief customer officer at the Fraud Compensation Fund, said: “We’re pleased members of these schemes will now be able to access their pension savings, following the payment of FCF compensation and securing of benefits.
“We trust this news will bring comfort to members of these schemes and provide assurance that we are making progress on current claims.
“However, we suspect there may still be members of schemes eligible for FCF compensation that haven’t yet come forward.”
The FCF website olists schemes that are being considered for compensation with details of the appropriate trustee to contact.
The Pensions Ombudsman Dominic Harris adds: “I am pleased we have been able to supply information from our investigations, and work closely with our partners, to help smooth the path to redress through the FCF for the members.”
“Intelligence sharing across the pension industry should remain a priority to reduce the harm committed by pension fraudsters.”
