Custody of Pension Assets following MGN

DCF_Evaluator

Lots of threads here re pension options. Few about the safe custody of pension pots.

Many may recall the loss of assets from the Mirror Group Newspapers pension fund in the early 1990's. We are better protected now via subsequent acts of parliament and occupational pension 'pots' being held independently of employers.

Is anyone up to date with how well we are protected now ..? and to what extent? ... for example against a drawdown scheme manager becoming insolvent? A life company becoming insolvent and unable to pay its annuities? Or poor record keeping of either leading to problems with payments due?

Any routine checks the average pensioner/imminent pensioner should make to check all is in order?

dunstonh

Lots of threads here re pension options. Few about the safe custody of pension pots.

There is so little about that because thanks to the MGN issues, a lot of protection came about to prevent repeats.

for example against a drawdown scheme manager becoming insolvent?

FSCS protection exists but remember that you are not investing in the drawdown provider. You are investing in the funds which hold the assets and the assets have a value even if the provider does not. Most are held under a trustee arrangement and ringfenced.

A life company becoming insolvent and unable to pay its annuities?

Very good FSCS protection for that.

Or poor record keeping of either leading to problems with payments due?

Poor admin does happen and there are various consumer protections in place to deal with any complaints. However, with that scenario, evidence is normally key. Nothing beats keeping your own records and not having to rely on third parties.