The collapse of construction firm Carillion has left many of its schemes’ 28,000-plus members anxious, concerned about the future of their pension, as many fall into the Pension Protection Fund (PPF).
And as has been seen with the British Steel pensions fiasco, Carillion members are at risk from scammers, taking advantage of concerned employees and former employees, encouraging them to transfer out.
If you add this to the complexities of defined benefit (DB) schemes, advisers should be bracing themselves for enquiries from concerned pension savers. The combination of Carillion and British Steel, and the high profile nature of both, could see concerns convert into irrevocable actions. Stuart Price, Partner and Actuary at Quantum, gives his thoughts…
Stuart said: “Going across to the PPF gives [scheme members] a good guarantee, but still [the benefits are] lower than they would have got had the employer been solvent.”
After the news about Carillion broke there were reports of scammers circling scheme members to coerce transfers. However, Mr Price said this would not affect some members, as once the schemes enter the PPF assessment, which is a lengthy process, members cannot transfer out.
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