DWP denies pot-follows-member will boost fraud

Last month, the DWP published proposals in which it opted for a system where small pots automatically transfer to new schemes when workers move jobs. However, Tim Middleton, technical consultant at the Pensions Management Institute (pictured), said choosing this model for consolidation will increase the use of fraudulent pension 'liberation' schemes. "Every time the economy slows there is an increase in pension liberation fraud," said Middleton. The Financial Services Authority and The Pensions Regulator (TPR) have warned consumers against pension liberation schemes, in which they ...