Pensions ad 'naive'

AN INSURANCE company's advertisements targeting former shipworkers and paper and packaging staff, with the aim of persuading them to transfer out of their occupational pensions, have been called 'naive' by an industry watchdog.

The adverts, placed in an evening paper by sales staff from Confederation Life, ask former employees in those industries to contact them.

At least one advert targeting people from a number of specific companies has appeared in the North West Evening Mail, Barrow-in-Furness.

It reads: 'Attention all ex- employees of VSEL, Cellophane, Bowater Scott. Contact George or David. It could be to your advantage.' These three firms have shed hundreds of jobs recently.

Callers are told that it may be in their interest to consider switching their personal pensions into private ones with Confederation Life.

Lautro, the organisation that regulates insurance firms, said: 'The adverts are not against the rules, but they are pretty naive. We have referred them to the company's head office.'

Bob Hewson, marketing and training officer at Confederation Life, said his company ran a number of similar adverts in local papers throughout the country. 'All of them go through rigorous compliance checks to ensure that they are not against Lautro rules,' Mr Hewson said.

Given the care his company took, he was surprised that Lautro had take exception to the advert but would listen carefully to any comments it had to make on the subject.

In addition, before approval was given for a pension transfer, a range of checks took place, from local level to head office. 'We have no interest in seeking to benefit from the distress of others,' Mr Hewson added.

Neither George nor David was prepared to comment.