The Pensions Regulator admits it could have done more to help British Steel Pension Scheme members understand the consequences of transferring out into defined contribution plans.
In its response to the work and pensions select committee’s report into British Steel published today the regulator reflects on what it has learned from the saga.
TPR says it could have worked more closely with the FCA and The Pensions Advisory Service to communicate the choices members had during the “time to choose” exercise.
This ran from October 2017 until January this year where the old scheme’s roughly 125,000 members could choose what they did with their pensions.
TPR notes the BSPS situation was highly unusual as it was a well-funded scheme with a low-risk investment strategy making transfer values extremely high with a very large number of non-pensioner members concentrated in a small area.
These factors made it easier for unscrupulous financial advisers and introducers to target them.
To learn from the experience TPR says it is already establishing new ways of working with the FCA and TPAS to ensure that joined up, clear information is provided to pension scheme members regarding transfer values.