Jack Dromey comments on FCA announcement on improvements to defined pension schemes

Jack Dromey MP, Labour’s Shadow Pensions Minister, commenting on the FCA announcement on improvements to defined benefit pension schemes, said: 

“Today’s announcement contains some welcome moves. For too many, the pensions market is complex, opaque and sadly, all too often open to abuse. Two years ago, we saw one of the most appalling pension scandals when members of the British Steel Pension Scheme were aggressively targeted by rogue advisors. Many of the workers lost tens of thousands of pounds. Labour have campaigned hard for compensation for those affected and yet many thousands are still out of pocket.

“Yet we are seeing the same problems repeated elsewhere, with workers’ hard-earned money left at risk. During the coronavirus crisis, we have seen an increase in pensions scams as ruthless scammers take advantage of the uncertainty to lure savers into sham investments.

“Labour’s priority is for pensions options to be fair and transparent. We have long called for tougher action against those who abuse the system and greater regulation of the pensions market. We continue to push for increased protection for Defined Benefit scheme members’ savings and clearer penalties for those who break the rules in the Pension Schemes Bill, along with greater clarity for individuals on their savings through a single public pensions dashboard.”

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