Tuesday, 07 May 2013 10:24
The Pensions Regulator has released a warning to pension scheme members to raise awareness of pension liberation fraud. Scheme members are being encouraged to transfer to a bogus pension "liberation" scheme however, you could be subject to a very large tax penalty of more than half of your pension savings. Companies claim they can help you access your pension fund before the minimum pension age of 55 and without tax consequences. This applies to overseas schemes as well as in the UK.
You may be able to access your pension fund before your minimum pension age if you have a terminal illness. However, for the majority of member's, promises of early cash are likely to result in serious tax consequences. If you are a member of the NHS Superannuation Scheme (Scotland), Scottish Teachers' Superannuation Scheme, Local Government Pension Scheme, Firefighters' Pension Scheme or Police Pension Scheme and you agree to send your transfer values to arrangements like this, you are risking serious tax charges.
The leaflets attached contain details about warning signs and guidance on what to do if you are approached by someone offering cash back from your pension. Be wary, if it sounds too good to be true it probably is.
More information and leaflets can be found on the Pension Regulator website.