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
  • 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

Recruitment Genius: Retirement Coordinator - Financial Services

Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...

Recruitment Genius: Annuities / Pensions Administrator

Negotiable: Recruitment Genius: You will be the first point of contact for all...

Ashdown Group: HR, Payroll & Benefits Officer - Altrincham - up to £24,000.

£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...

Ashdown Group: Learning and Development Programme Manager

£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...

Day In a Page

Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat
Saudi Arabia's airstrikes in Yemen are fuelling the Gulf's fire

Saudi airstrikes are fuelling the Gulf's fire

Arab intervention in Yemen risks entrenching Sunni-Shia divide and handing a victory to Isis, says Patrick Cockburn
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media

The only direction Zayn could go

We wince at the anguish of One Direction's fans, but Malik's departure shows the perils of fame in the age of social media
Young Magician of the Year 2015: Meet the schoolgirl from Newcastle who has her heart set on being the competition's first female winner

Spells like teen spirit

A 16-year-old from Newcastle has set her heart on being the first female to win Young Magician of the Year. Jonathan Owen meets her
Jonathan Anderson: If fashion is a cycle, this young man knows just how to ride it

If fashion is a cycle, this young man knows just how to ride it

British designer Jonathan Anderson is putting his stamp on venerable house Loewe
Number plates scheme could provide a licence to offend in the land of the free

Licence to offend in the land of the free

Cash-strapped states have hit on a way of making money out of drivers that may be in collision with the First Amendment, says Rupert Cornwell
From farm to fork: Meet the Cornish fishermen, vegetable-growers and butchers causing a stir in London's top restaurants

From farm to fork in Cornwall

One man is bringing together Cornwall's most accomplished growers, fishermen and butchers with London's best chefs to put the finest, freshest produce on the plates of some of the country’s best restaurants
Don't believe the stereotype - or should you?

Don't believe the stereotype - or should you?

We exaggerate regional traits and turn them into jokes - and those on the receiving end are in on it too, DJ Taylor
How to make your own Easter egg: Willie Harcourt-Cooze shares his chocolate recipes

How to make your own Easter egg

Willie Harcourt-Cooze talks about his love affair with 'cacao' - and creates an Easter egg especially for The Independent on Sunday
Bill Granger recipes: Our chef declares barbecue season open with his twist on a tradtional Easter Sunday lamb lunch

Bill Granger's twist on Easter Sunday lunch

Next weekend, our chef plans to return to his Aussie roots by firing up the barbecue
Joe Marler: 'It's the way I think the game should be played'

Joe Marler: 'It's the way I think the game should be played'

The England prop relives the highs and lows of last Saturday's remarkable afternoon of Six Nations rugby
Cricket World Cup 2015: Has the success of the tournament spelt the end for Test matches?

Cricket World Cup 2015

Has the success of the tournament spelt the end for Test matches?
The Last Word: Justin Gatlin knows the price of everything, the value of nothing

Michael Calvin's Last Word

Justin Gatlin knows the price of everything, the value of nothing