Government plans to “nudge” people to take pensions guidance 29 October 2020 The Department for Work and Pensions (DWP) has confirmed, in a press release, that the Government intends to strengthen protections for pension savers, and will do so by “nudging” them towards taking Pension Wise guidance when they seek to access their pension. The proposals have been made following on from successful trials and will mean that any occupational pension schemes will be required to direct members towards taking advice from Pension Wise prior to making any decisions. The Pension Wise service delivers free and impartial guidance aimed to assist people over the age of 50, who have an occupational pension, to understand the options they have in relation to accessing their pension pots. Trials highlighted a substantial uplift in the number of savers making appointments with Pension Wise in scenarios where pension providers explained the purpose and content of the guidance, and subsequently either offered to book a Pension Wise appointment, or diverted them to the Money and Pensions Service (MaPS), who booked the appointment for them.
A Statement of Policy Intent has been published and will build on the results of the trials and encouraging more people, who would benefit from Pension Wise, but who haven’t made an appointment, to do so.
Guy Opperman, Minister for Pensions and Financial Inclusion, said:
“I want taking guidance to become a natural part of the journey savers embark on when making decisions about their pension pots.
These measures will advance the Government’s goal of ensuring that people have the necessary support and information to make informed choices about their financial futures.”
In addition to advising people to make use of the service, it is hoped that the new proposals will also ensure that consumers are further protected from scams. “Stronger Nudge” measures are part of a package which has been designed to assist people in making informed decisions when accessing their pension savings. The Pension Wise service was launched in 2015, and demand for it has increased year on year. In 2019-20, the MaPS delivered more than 200,000 Pension Wise interactions, which included appointments by telephone or face-to-face and online sessions.
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Fraudster made to repay £274,000 he stole from workplace pension scheme 30 October 2020
The Pensions Regulator (TPR) has confirmed that William Bessent, a trustee and administrator for the Focusplay Retirement Benefit Scheme, has been ordered to pay back £274,733 that he stole from a workplace pension scheme. He transferred £292,000 of savers’ money into businesses that were either struggling or new, that were run by himself, his family and a client. On October 28 2020, a confiscation hearing was held at Preston Crown Court, where Judge Heather Lloyd instructed Mr. Bessent to repay £274,733 to the victims. £233,317 of this was to be returned to the Focusplay Retirement Benefit Scheme which equated to the difference between the amount stolen and amounts that had already been repaid. The amount must be repaid within a three-month period, or Mr. Bessent, who is an accountant based in Lancashire, will face an additional 30-month jail sentence. He was also ordered to pay the full amount of cash held across his bank accounts, which equated to £9,861, within seven days.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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