The Pensions Regulator (TPR) has urged the pensions industry to make use of recently introduced easements and guidance to better protect member benefits.

TPR chief executive, Charles Counsell, called on trustees and providers to get behind the message that savers must “avoid hasty decisions about cash that’s taken a lifetime to build”.

Counsell stated: "Pensions remain a safe long-term investment for retirement. But fluctuating stock markets caused by Covid-19 could lead to pension savers making a rushed decision that they come to regret.

"As people worry about the pandemic’s impact on their pensions and investments, scammers are also looking for an opportunity to strike."

Counsell's comments follow the recent joint statement from TPR, Financial Conduct Authority (FCA), Money and Pensions Service, which warned of the increased threat of scams facing savers during the Covid-19 crisis.

Counsell acknowledged that the pandemic might also mean trustees need more time for transfer requests, especially given this increased threat of scams.

He emphasised: “I want to reassure trustees of defined benefit schemes they’ll have the time they need to deal with cash equivalent transfer value (CETV) requests, whether because they need to reassess how transfers are calculated or because they need to prioritise pension and bereavement payments."

Reiterating the easements announced earlier this month, which allow trustees discretion to suspend CETV activity for three months, Counsell emphasised that The Pensions Ombudsman has also confirmed that it will take the updated guidance, and the crisis generally, into account when making judgements.

He emphasised that the industry must now "step up and protect savers using every possible means", arguing that providers and trustees are "the first line of defence" in protecting savers from pension scams.

However, while the regulator has a variety of easements to support companies during the crisis, Counsell emphasised that there are still areas where trustee responsibilities are more important than ever.

He explained: “Trustees are already required to provide information and retirement risk warnings to help defined contribution (DC) savers understand the risks on the retirement options they have available to them.

“This is more than just a regulatory requirement. It is about responsible stewardship and safeguarding savers at a time when they need it most.”

Counsell drew attention to recent FCA updated guidance on this issue, emphasising the that providers and trustees have a "key role to play in ensuring savers make informed choices".

He also highlighted that given the “exceptional circumstances”, the FCA has provided example questions that can be asked to help illustrate to savers the risks of the current climate.

Counsell concluded: “I urge all providers, and trustees too, to use the FCA’s guidance for firms on pensions and retirement income to help savers avoid making a choice they long regret.

“Our easements and the FCA’s guidance should allow providers and trustees to concentrate on the matters that matter most, like protecting people’s pensions.”

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