Source: Benefits Canada
The Pension Regulator, the U.K. government body that oversees defined benefit pension plans, is calling on plan sponsors to help advance a three-pronged strategy to fight pension fraud.
“Over many years, we have worked to prevent savers’ losses and put fraudsters in prison: running large-scale public awareness campaigns, leading a multi-agency response to the threat through [the pension scams action group]. . . . But the truth is, we must all do more to combat pension scams,” said Nicola Parish, TPR’s executive director of frontline regulation, in a press release.
According to the regulator, the strategy’s success is dependent on the support of the U.K.’s pensions sector, which it hopes will be more proactive about reporting cases of fraud. Between 2017 and 2020, just £30 million ($46 million) of pension fraud was reported, though the regulator believes the vast majority of cases go undetected. Under existing rules, plan sponsors aren’t required to report cases of fraud.