Personal PensionNov 26 2014

Five pension liberation schemes shut down

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by

Five connected pension “liberation” schemes which received transfers totalling more than £134m have been shut down.

The Pensions Regulator said fees of 11 per cent were charged to carry out the transfers, which had been received from more than 1,400 people.

It was concerned the schemes were established with the main purpose of providing a cash payment to the member rather than providing retirement benefits and that this was contrary to the Pensions Act 2004.

The regulator started High Court proceedings against A Admin Ltd, Warwick Pensions Administration Ltd, Lincoln Pensions Administration Ltd, Baxendale Walker LLP, and Paul Baxendale-Walker in July 2013.

The defendants have now signed a legally binding agreement confirming that the five schemes are wound up, the relevant defendants no longer act as trustees of the schemes and the schemes are not able to accept transfers from any other pension schemes.

Andrew Warwick-Thompson, executive director at The Pensions Regulator, said: “Our action in this case sends a message to anyone operating in this marketplace that we will take action to shut down schemes that pose the greatest risk to members’ pensions, and which may, as a result, undermine confidence in the pensions system generally.”