UK. DB transfer victims lose up to 40% of compensation
Victims of defined benefit transfer mis-selling stand to lose an average 40 per cent of compensation payments thanks to changes in the way redress is calculated.
While this problem could affect every victim of DB transfer misadvice across the UK, the discrepancy has come to light because steelworkers at Port Talbot have been ‘comparing notes’ on the compensation levels they have received so far.
As a result, campaigners helping former British Steel Pension Scheme members to get redress have warned the way the methodology works means some people will win and some people will lose.
This is because redress is based on variable factors such as market performance and inflation indexation. These values will be different on the first business day of every quarter – the point at which calculations are made for the rest of the quarter.
For example, one steelworker, Mr G, aged 35, was given a £27,000 payout from the FSCS in September last year.
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