Miners transfer pension schemes (CORRECTED)

CORRECTION (PUBLISHED 29 JANUARY 1994) APPENDED TO THIS ARTICLE

LOCAL officials of the National Union of Mineworkers are encouraging former miners to switch their benefits out of the Mineworkers' Pension Scheme, a leading insurance company claimed yesterday.

More than half a million people are caught up in the pension transfers debacle, of which 65,000 are miners leaving the MPS. Financial regulators believe many thousands of investors have lost money after being badly advised to move their benefits to a personal pension with a life insurer.

The insurer, which would not be named, said some NUM officials were angry and distrustful of British Coal and the Government, and feared for the future of the MPS, widely recognised as one of the best and most generous pension schemes.

A spokesman for the insurer said '(the NUM officials) talking to us and our reps are very keen to help their former colleagues get out of the Mineworkers' Pension Scheme because they feel it's tainted'.

This advice contradicts the NUM's official line, which strongly recommends miners should stay with the MPS. An NUM spokeswoman said: 'We have told scheme members not to risk this shark-infested ocean which seems to be lying out there in the world of personal pension schemes.'

Pearl Assurance, which has received more than pounds 60m from the MPS, said many miners were determined to leave the scheme. A spokesman said: 'We have had many cases where we have been saying it's simply not best advice, and they've said, 'I don't give a stuff, I want out'.'

Pearl said it accepts pension transfers that, objectively, are against the best interests of the client. Prudential Corporation said it turns down such business, irrespective of the client's emotional reasons for making the transfer.

Despite the bad publicity about pension transfers, Pearl is still seeking business from miners. Three or four of its salesmen were last weekend talking to miners who used to work at Frickley Colliery, South Yorkshire.

Meanwhile, other insurers are backing away from the pension transfers market. Royal Life will not accept transfers from 20 occupational schemes, including those for miners, teachers and the NHS. Legal & General is no longer accepting borderline cases and will only accept business that is 'obviously transferable'. L&G said: 'We are one step short of pulling out.'

CORRECTION

NUM policy

An article last month, 'Miners transfer pension schemes', quoted an insurance company's claims that local officials of the National Union of Mineworkers were encouraging former miners to switch their benefits out of the Mineworkers' Pension Scheme. Later in the article there was a separate reference to Frickley Colliery, South Yorkshire. The Frickley branch of the NUM has asked us to say that it is not its policy to recommend such transfers.

View from City Road, page 20

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Treasury Assistant - Accounts Assistant - London, Old Street

£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...

Ashdown Group: Business Analyst - Financial Services - City, London

£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...

SThree: Trainee Recruitment Consultant

£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...

Day In a Page

General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband

Chuka Umunna: A virus of racism runs through Ukip

The shadow business secretary on the benefits of immigration, humility – and his leader Ed Miliband
Yemen crisis: This exotic war will soon become Europe's problem

Yemen's exotic war will soon affect Europe

Terrorism and boatloads of desperate migrants will be the outcome of the Saudi air campaign, says Patrick Cockburn
Marginal Streets project aims to document voters in the run-up to the General Election

Marginal Streets project documents voters

Independent photographers Joseph Fox and Orlando Gili are uploading two portraits of constituents to their website for each day of the campaign
Game of Thrones: Visit the real-life kingdom of Westeros to see where violent history ends and telly tourism begins

The real-life kingdom of Westeros

Is there something a little uncomfortable about Game of Thrones shooting in Northern Ireland?
How to survive a social-media mauling, by the tough women of Twitter

How to survive a Twitter mauling

Mary Beard, Caroline Criado-Perez, Louise Mensch, Bunny La Roche and Courtney Barrasford reveal how to trounce the trolls
Gallipoli centenary: At dawn, the young remember the young who perished in one of the First World War's bloodiest battles

At dawn, the young remember the young

A century ago, soldiers of the Empire – many no more than boys – spilt on to Gallipoli’s beaches. On this 100th Anzac Day, there are personal, poetic tributes to their sacrifice
Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves

Follow the money as never before

Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves, reports Rupert Cornwell
Samuel West interview: The actor and director on austerity, unionisation, and not mentioning his famous parents

Samuel West interview

The actor and director on austerity, unionisation, and not mentioning his famous parents
General Election 2015: Imagine if the leading political parties were fashion labels

Imagine if the leading political parties were fashion labels

Fashion editor, Alexander Fury, on what the leaders' appearances tell us about them
Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

The architect of the HeForShe movement and head of UN Women on the world's failure to combat domestic violence
Public relations as 'art'? Surely not

Confessions of a former PR man

The 'art' of public relations is being celebrated by the V&A museum, triggering some happy memories for DJ Taylor
Bill Granger recipes: Our chef succumbs to his sugar cravings with super-luxurious sweet treats

Bill Granger's luxurious sweet treats

Our chef loves to stop for 30 minutes to catch up on the day's gossip, while nibbling on something sweet
London Marathon 2015: Paula Radcliffe and the mother of all goodbyes

The mother of all goodbyes

Paula Radcliffe's farewell to the London Marathon will be a family affair
Everton vs Manchester United: Steven Naismith demands 'better' if Toffees are to upset the odds against United

Steven Naismith: 'We know we must do better'

The Everton forward explains the reasons behind club's decline this season
Arsenal vs Chelsea: Praise to Arsene Wenger for having the courage of his convictions

Michael Calvin's Last Word

Praise to Wenger for having the courage of his convictions