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In total over £20 million of pension savings were lost, and victims lost up to £200,000 each.
Jane Mitchell of the Crown Prosecution Service (CPS) said:
“The harm caused by these fraudsters is immense, involving raids on the victims’ pension pots which wrecke d their future livelihood and post-retirement plans. Many victims were left with no pensions and will have to work well beyond their retirement date to provide for themselves and their families."
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Collective Defined Contribution pension schemes officially launched Published: 2 August 2022 Emailed: 3 August 2022
Collective Defined Contribution (CDC) schemes have been launched in the UK following consultations and legislative changes introduced in the Pension Schemes Act 2021.
A research briefing, released 1 August 2022, details the positives, negatives and future plans for CDC schemes in the UK. CDC pension schemes are an alternative to the two main scheme types currently in use, defined contribution (DC) and defined Benefit (DB). The new scheme type allows Employees and employers to contribute to a collective fund which provides an income in retirement. This fund does not need to be guaranteed, like a DB would, therefore pensions paid out are increased or decreased depending on the funding level at the time. Currently there are no CDC schemes authorised in the UK, similar schemes exist in Canada, Denmark and the Netherlands. The first such scheme is likely to be the Royal Mail Pension Plan, which has advanced plans on how it will implement and run a CDC pension scheme. The Work and Pensions Committee states that “other employers will want to learn from this scheme”. There is the possibility for future iterations of CDC schemes to be run across multiple employers using a master trust. Another type of alternative scheme is decumulation only, where only individuals receiving pensions are part of the scheme.
The Department for Work and Pensions will consult further on design principles and approaches for new kinds of CDC schemes.
CDC authorisation and supervision will be handled by The Pensions Regulator who have compiled a code of practice for the schemes.
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The Pensions Regulator: “We must all do more to combat pension scams” Published: 4 August 2022 Emailed: 10 August 2022
The Pensions Regulator (TPR) has released a detailed plan to tackle scams in the pensions market. However, they state for this plan to work the entire industry needs to “lead the way in thinking of innovative ways to protect savers now and in the future”.
The scam strategy has three key aims:
• educate savers about the threat scams provide • encourage higher standards that prevent practices which lead to saver harms • fight fraud through the prevention, disruption and punishment of criminals.
Some of the actions TPR will take to achieve these goals are:
• encourage anti-scam messaging on annual benefit statements • support the Department for Work and Pensions (DWP) with their “stronger nudge to guidance” plans
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