The latest Government action to fight pension scams involves changes to pension scheme members’ statutory right to transfer their pension to a new arrangement. This follows the cold-calling ban and tightening of HM Revenue & Customs requirements to register new pension schemes.

The Trustee has updated their processes to reflect the rules. The rules allow trustees to stop a transfer where a ‘red flag’ is identified. A ‘red flag’ is raised where there are clear signs of fraud or methods frequently used by scammers are identified.

In other circumstances where a potential scam is suspected, scheme trustees and administrators can raise an ‘amber flag’. This would pause the transfer until the member takes specific scams related guidance from the Money Helper service.

Whilst these measures should make it harder for scammers to target transfers, it should be remembered that there is no single step that can successfully combat pension scams.

If you are considering transferring your pension entitlement out of the Plan, you should consult a financial adviser regulated by the Financial Conduct Authority (FCA). If the value of your defined benefit scheme is more than £30,000, you’ll be required to get advice from a regulated financial adviser before you can transfer. It’s more important than ever to make sure you’re vigilant and that anyone you speak to about your pension is authorised to talk to you. You can check if an individual is authorised by using the FCA’s Scam Smart website at fca.org.uk/scamsmart

The Pensions Regulator and the FCA urge members to be vigilant when receiving unexpected offers about their pension savings and to check that it is from a reputable and reliable source.

How familiar are you with the common scam tactics?

Be sceptical if you’re:

• Contacted out of the blue (it’s illegal for someone to cold call you to offer financial advice).
• Promised high investment returns or guaranteed returns often in overseas investments.
• Offered a free pension review.
• Approached with claims you can access your pension before you’re age 55 (the minimum age someone can normally access their pension savings in the UK).
• Pressured to act quickly to take up an offer.
• Contacted by someone claiming to be from a legitimate pensions organisation which they cannot prove.