New transfer value legislation to combat pension scams

There continues to be industry focus on protecting pension members from scams and the Pension Schemes Act 2021 gives trustees the power to restrict statutory transfer rights. The legislation introduces two conditions, that will require trustees and their administrators to carry out additional checks on the majority of transfers.

Launched in 2015, the XPS Scam Protection Service is a bespoke approach that can be used to support your administration team to help meet the requirements set out by the transfer regulations, and uses a phone call with members to obtain robust information about their transfer. Many of the red and amber flags in the regulations are best identified by speaking directly to the member, which also increases the chances that any suspicious activity is identified that paper-based or standardised approach alone may not spot

The XPS Scam Protection Service also identifies additional key scam warning flags as set out in the PSIG Code of Good Practice, plus a number of bespoke flags that XPS have identified through our experience. Over six years the service has helped protect 6,800 members’ transfers totalling over £1.6 billion. We see a direct one to one conversation and engagement as key to protecting members leaving pension schemes, and talking directly to your members is recommend by both The Pension Regulator's pledge to combat pension scams, and also the Pension Scams Industry Group (PSIG) code of good practice. The XPS Scam Protection Service is available now to help you protect your members.

Regulator pledge – industry asked to step up processes to combat pension scams

With the growing risk from pension scams, the Pensions Regulator is asking trustees, administrators and providers to pledge to protect members from pension scams. A key part of this recognises the importance of engaging directly with members in line with the XPS Scam Protection Service. We can help you review and improve the processes you have in place to identify scams and engage with members in order to be able to meet the pledge. We believe the pledge will become a reference point in future if members do unfortunately fall victim to a scam.

XPS Pensions Group are proud to have signed up to the pledge.