Jessica O'ConnorMore than 2,000 victims of pension scams have received compensation to help them rebuild their lives, with further payments set to follow.
The Pensions Regulator (TPR), the Fraud Compensation Fund (FCF), The Pensions Ombudsman (TPO) and Dalriada Trustees confirmed today (19th August) that £81.5m has so far been paid to 58 pension schemes whose members were defrauded by scammers.
The joint-agency initiative follows a 2020 High Court ruling which clarified that occupational pension schemes set up as part of a scam could be eligible for compensation through the FCF.
Gaucho Rasmussen, executive director of regulatory compliance at TPR, said: “We know how devastating the impact of pension fraud can be and hope this compensation will help members of the affected schemes to rebuild their lives.
“We and our partners have identified further opportunities to bring compensation to victims of historic scams – and more payments are to follow later this year and in 2026.
“But prevention remains paramount. Compensation is far from guaranteed for all those impacted by suspected fraud, as not all types of pension schemes used by fraudsters meet the eligibility criteria.”
Sara Protheroe, chief customer officer at the FCF, urged any potential victims who have not yet come forward to check if their scheme may be eligible.
She said: “For these members, losing their pension savings due to the dishonest actions of those they put their trust in will have been a deeply distressing experience. We trust this news will bring comfort to members of these schemes and provide assurance that we are making progress on current claims.”
The Pensions Ombudsman, Dominic Harris, emphasised the importance of intelligence sharing.
He concluded: “A lifetime of savings can be stolen in an instant, and I have seen the devastating impact of pensions dishonesty.
“Intelligence sharing across the pension industry should remain a priority to reduce the harm committed by pension fraudsters.”
