§ Mr. DenhamTo ask the Chancellor of the Exchequer what priority groups were established in the review of pension mis-selling; what were the definitions of the membership of each group; what initial deadlines were established for the completion of the review of each group; how many and what percentage of each group had their review completed by the relevant initial deadline; how many and what percentage of each group have now had their review completed; and by what date he expects the process to be complete. [9349]
§ Mrs. Angela KnightIn the Securities and Investments Board's guidance of October 1994 to self-regulating organisations and recognised professional bodies, five priority groups of personal pension holders were identified for automatic review. Any personal pension holder who wants his or her case reviewed can have it reviewed.
The priority groups, the characteristics of people in each group, and the targets which were set in 1994 for completion of reviews are set out in the table.
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Priority groups Target date by which most cases ought to be reviewed Pension transfers, priority group 1 31 December 1995 men aged 55 or over at the time of the transfer women aged 50 or over at the time of transfer people who have retired spouses and dependants of people who have died Pension transfers, priority group 2 31 December 1996 men aged between 50 and 54 at the time of transfer women aged between 45 and 49 at the time of transfer Pension opt-outs, priority group 1 31 December 1996 people who are retired/spouses or dependants of people who have died people who left an employer's scheme, were aged 35 or over at the time they took out a personal pension, and who are still with the same employer Pension opt-outs, priority group 2 30 June 1996 people who did not join an employer's pension scheme, were aged 35 or over at the time they took out a personal pension, are paying their own money into a personal pension, and who are still with the same employer
Priority groups Target date by which most cases ought to be reviewed people who left an employer's pension scheme, were aged under 35 at the time they took out a personal pension, are paying their own money into a personal pension and who are still with the same employer Pension opt-outs, priority group 3 31 December 1996 people who left an employer's pension scheme, were aged 35 or over at the time they took out a personal pension and who are no longer with the same employer Data on the numbers of cases in each priority group that have been completed, and when, are not held centrally.
To speed up progress with the reviews, the SIB issued new guidance on 13 November 1996. By using the new streamlined approach in the guidance, it should be possible for investment firms to conclude case reviews more quickly and thus put matters right for investors more quickly too. At this stage, it is not clear how fast cases can now be progressed. The SIB now looks to the front-line regulators to assess what can be achieved by their members using the new guidance, and then to set and monitor challenging but appropriate targets for completing the review process.
Where suitable, personal pensions remain an excellent way for many people to secure income for their old age.