Ros Altmann was quoted in The Times recently as saying: “Inaccurate and woolly statements by Government agencies incorrectly led members to believe pension contributions were safe in their final salary schemes. The Government must compensate victims of this maladministration in full to right this terrible wrong;” If contributions were not safe in final-salary schemes, why were insurance companies and IFAs punished so severely for advising clients to leave such schemes?
If the Government is forced to compensate members of final-salary schemes, then surely they should compensate insurance companies and IFAs as well. Of course, this will never happen.
Will there be a client who has been compensated by an IFA and reinstated into his final-salary scheme, who then loses out because his employer goes bust, who then looks for compensation from the Government because the guaranteed benefits of the final-salary scheme turn out not to be guaranteed after all?
Comer and Farnan, Sunderland