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P&O Staff Warned Not To Transfer Out Of DB Pension Scheme

P&O Staff Warned Not To Transfer Out Of DB Pension Scheme

In March this year, P&O Ferries announced that there would be hundreds of redundancies made, The BBC reported that over 800 staff were due to be made redundant, with over £36.5 million being offered in compensation packages.  The out of the blue announcement had led to mass protests and increased worry for employee’s future.

Today, The Financial Conduct Authority (FCA), The Pensions Regulator (TPR) and The Money and Pensions Service (MaPS) have warned current and former employees from transferring out of P&O defined benefit pension schemes.

In light of the above redundancies, it has been advised that employees of P&O Ferries seek financial advice in relation to their pensions and to check their advisor is FCA registered. This is particularly important to those current and former employees who are considering transferring out of their current DB scheme.

As reported on Money Marketing, The regulators said, in a joint statement, that this is “unlikely to be in the best interests of most people”, and urged advisors to consider advice on pension transfers carefully. “Savers concerned about their pensions, or who are considering transferring out, should seek impartial guidance from MoneyHelper, run by MaPS,”

Historic negligent advice cased many issues for British Steel Workers, who were advised to transfer out of their defined benefit pension into a defined contribution pension. This is a situation that we do not want to see repeated for P&O Ferries current or former employers with regards to either their personal pension plans or SIPPs.

High Street Solicitors, have helped numerous client recover financial losses, due to negligent pension transfer advice provided by financial advisors. We urge readers to be vigilant when it comes to discussions surrounding one’s pension and future benefits their current pension withholds. The P&O Ferries redundancy outbreak could be an ideal opportunity for financial advisors to pursue these former employees, whilst tensions are high now that funds and futures are in jeopardy. As per the above comment states, transferring out may not be in your best interests.