The separation of the BSPS from Tata Steel has left members open to be targeted by rogue financial advisers who could try to persuade them to hand over their pension pots, it is feared. Stuart Price, Partner and actuary at Quantum, gives his thoughts….
Stuart said: “I have had sight of the information being sent to BSPS members, which is not easy to understand, and so is not helping their situation,” he said.
“The two options available to the 130,000 members both result in reduced benefits, therefore if someone contacts you offering a better deal, it could be very tempting.
“The majority of the 700 transfers out to date will be legitimate, and in the member’s best interest, however, those that appear too good to be true could well be fraudulent or very high risk.
“Scammers are no doubt preying on BSPS members, looking to entice them to transfer out of the BSPS and in some extreme cases, members could lose all of their hard-earned pension entitlement which re-inforces the need for the Government to review the restrictions on pension transfers.
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