Originally held with the Tayside Pension Fund, these inflation-proofed pensions come with benefits and guarantees that are lost immediately if moved. Losses have run into hundreds of thousands of pounds for some pensioners, a Scottish financial claims management firm has said.

Beat the Banks continues to uncover multiple cases of inappropriate advice that have led to both current and former employees suffering considerable financial losses – and only limited to recompense.

The firm has so far identified over £3.5 million in calculated losses for its clients alone.

A total of 41 employers allow their employees to join the fund, including:

• Angus Council
• Dundee City Council
• Dundee & Angus College
• Perth & Kinross Council
• Perth College UHI
• Police Scotland (non-uniformed staff)
• Scottish Fire & Rescue Service (non-uniformed staff)
• Tayside Contracts

Former banker Mike Begg, managing director at Beat the Banks, has described the situation as a “financial scandal” that is “being completely ignored”.

“Unfortunately, we continue to see unsuspecting members of former workplace final salary pensions lose huge amounts of money due to reckless and greedy financial advisers and simply shocking pension transfer advice,” he added, urging anyone who has received pension transfer advice to seek an immediate review, even if they were initially satisfied with the advice.

One of the firms involved, Capital & Income Solutions, has now gone into liquidation and the Financial Services Compensation Scheme (FSCS) website is open for claims against the firm.

Mr Beggs noted the firm’s association with a financial advisor, who provide pension transfer advice, despite the financial advisor not being authorised or regulated.

Three cases of mis-advice related to this advisor have been identified by Beat the Banks, highlighting the importance of regulatory compliance and the resulting consequences when it is not adhered to.

In each of the three cases, a Tayside Pension Fund member suffered a significant loss after transferring their pensions. They were promised improved financial flexibility or performance.

The FSCS calculated losses at £165,471.49, £116,656.26, and £22,562.81, for each individual respectively. The total losses were £304,690.56.

Compensation was awarded by the FSCS, totalling over £192,000, but this only partially covered the full losses as compensation is capped at £85,000 for the individuals who suffered losses in excess of that.