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DWP Proposes Targeted Safeguard to Block Suspicious SSAS Pension Transfers

This consultation empowers trustees to halt transfers flagged as suspicious with further protections planned later in 2026.

Overview

  • The Department for Work and Pensions has opened a consultation that would add a new warning flag for transfers into Small Self‑Administered Schemes where there is no clear link between saver and scheme.
  • Ministers have said transfers that trigger strong scam indicators would be automatically blocked, giving trustees and administrators a clear power to stop suspect moves before funds leave a pension pot.
  • The government announced the consultation on Tuesday, June 9, 2026, and is asking trustees, administrators, scheme members and pension professionals for views as it develops wider anti‑scam measures.
  • Officials highlighted that average losses in SSAS‑linked scam cases have risen to about £38,400 per victim, a key reason the proposals focus on SSAS arrangements commonly used by small businesses.
  • The move builds on the 2021 transfer rules that let trustees pause or refuse transfers and follows a 2023 review that said the rules work but can be complex; ministers say they will also seek to cut red tape for legitimate transfers and may bring further regulatory or primary legislation later in 2026.