Companies are singling out pension savers and claiming that they can help them access their pension fund before the minimum pension age of 55 and without tax consequences.
In rare cases, such as terminal illness, some members may be able to access pension funds before their minimum pension age, but for the majority of member’s promises of early cash will be bogus and are likely to result in serious tax consequences. Members of the HSC Pension Scheme who agree to send their transfer values to arrangements like this are risking tax charges and penalties of more than half of their pension savings. This activity can be fraudulent where members are misled, for example, about the consequences of agreeing to a transfer.
This activity is called, ‘pension liberation fraud’ and members who agree to it could face a tax bill of more than half the value of their pension savings.
The Pensions Regulator and other agencies have produced information about the threat of these:
Publication Pension Liberation Fraud Action Pack – an action pack to help pension professionals. Provides some background on pension liberation fraud activities, including:
- Example scenarios of pension liberation fraud
- The warning signs when members have been targeted
- Information on what you can do to reduce the risk of pension liberation fraud
- A checklist for administrators to help spot liberation arrangements
Pension Liberation Fraud Transfer Pack Insert for members – Information on the Pensions Advisory Service Website. HSC Pension Service will include this insert when issuing transfer estimates to members.
Pension Liberation Fraud Awareness leaflet for members – Information on the Pensions Advisory Service Website for members with queries about pension liberation fraud.
More information and leaflets can be found on the Pensions Regulator Website at: