Concerns have been raised by the Trades Union Congress about workers being targeted by rogue financial advisers targeting their pension scheme savings. In a submission to MPs, they have called for action to be taken to stop these rogue advisers targeting workers in defined benefit (DB) pension schemes.
Unions representing some of the UK's largest industrial hubs feared that some financial advice firms were using over-aggressive tactics to convince people to transfer out of their final salary or DB schemes.
The TUC, that represents 50 unions has written to the Work and Pensions Committee as part of its inquiry into pension freedoms to voice its concerns about these practices. It said it had received reports from members that financial advisers have been "targeting workplaces where staff have decent levels of accrued benefit pensions, such as the power generation sector".
The TUC added:
"They are concerned that this leads to staff transferring savings where it is not in their interests to do so. We would like employers to retain records of visits by financial advisers to workplaces and report trends in what IFAs are being used so that financial regulators could become aware of patterns in behaviour. "
The TUC also suggested that some workers were being incentivised to transfer out of their workplace schemes by their employers in a bid to relieve the company of some of their pension obligations.
"Unions are concerned that this has led some employers to highlight the potential for transfers to staff whenever possible. We would like to see the committee explore the potential for restrictions on the publicising of transfers (while not highlighting the many benefits of being in a scheme), particularly at times such as consultations around pensions changes."