A group of British MPs have condemned UK government, Tata Steel and pension regulatory body of UK over pensions mis-selling scandal that they allege ‘exploited them for cynical personal gain.’
The report by MPs narrates concerns regarding the financial advice provided to them by pensions advisory firms. Last year an agreement was signed with UK pension authorities, after enormous speculations with the payment of half-a-billion pounds and an equity stake. This separated Tata Steel U.K. from British Steel Pension Scheme (BSPS) while improving the company’s economic viability.
Concerns started arising late last year, because of the advice of pension advisory firms to the members on whether to stick with the existing scheme (which will enter the Pension Protection Fund, the government scheme that covers members of pension scheme that falls into insolvency), or transfer to a new defined contribution scheme being set up by Tata Steel or transfer into a third party scheme.
“Many BSPS members were shamelessly bamboozled into signing up to ongoing adviser fees and unsuitable funds characterised by high investment risk, high management charges and punitive exit fees,” stated the report by the House of Commons Work on Thursday.