Carillion, one of the UK’s largest construction companies with major UK government public sector contracts and 20,000 employees in the UK, announced on Monday that it had “no choice but to take steps to enter into liquidation with immediate effect.”
The 1,300-member pension scheme trade association said that many companies will seek to “capitalise on this issue by encouraging people” to transfer out of their DB schemes.
Joe Dabrowski, head of governance and investment at the PLSA said: “One in six (17%) pension holders in the UK have been contacted by a company – other than their provider – to discuss making changes or transferring their pension. And following the collapse of Carillion, we have already seen warning signs that scammers may be seeking to exploit DB scheme members’ fears about their future.”
He said: “We call upon regulators to act urgently to ensure that members are protected, and to take the strongest possible action against unscrupulous companies looking to take advantage of savers. Transfers should only be undertaken if they are in the best interest of the scheme member and with the right level of guidance.”
Mr Dabrowski added: “Scheme members who are concerned about the future of their scheme should gain comfort from the existence of the Pension Protection Fund (PPF).
“This pensions lifeboat already looks after more than 300,000 member’s pensions and has the financial strength as well as experience to deal with any claims resulting from companies’ liquidation.”