Over 2,000 pension scam victims have received compensation to help them rebuild their lives, with a total of £81.5m in compensation paid to 58 pension schemes whose members were defrauded by scammers, The Pensions Regulator (TPR) has confirmed.

The update from TPR, the Fraud Compensation Fund (FCF), The Pensions Ombudsman (TPO) and Dalriada Trustees confirmed that more payments are set to follow for other victims as a result of the joint-agency initiative.

Work to secure compensation for savers began after a High Court ruling in 2020, which confirmed that occupational pension schemes set up as part of a scam could potentially be eligible for FCF compensation. 

The compensation secured by Dalriada Trustees, the firm of professional trustees who were appointed by TPR to manage these particular defrauded schemes, means that 2,016 members affected will now have access to their pensions via a secure pension scheme. 
 
This includes £9.8m in compensation paid out to three pension schemes whose members’ pension savings were lost in the Norton Motorcycles Holdings case, as well as compensation for victims of the Friendly Pensions Ltd fraud, which saw Susan Dalton and Alan Barratt convicted and jailed in 2022 for their part in the criminal enterprise that stole £13.7m.

In addition to this, death benefits totalling £1.5m have been paid to those impacted.

Dalriada Trustees managing director, Adrian Kennett, said that this news will be "potentially life-changing" for people defrauded out of their pension savings who have faced uncertainty for several years.

FCF chief customer officer, Sara Protheroe, agreed, suggesting that the latest update will "bring comfort to members of these schemes and provide assurance that we are making progress on current claims".  

“I am pleased we have been able to supply information from our investigations, and work closely with our partners, to help smooth the path to redress through the FCF for the members," pensions ombudsman, Dominic Harris, added.

“A lifetime of savings can be stolen in an instant, and I have seen the devastating impact of pensions dishonesty on the members who have brought us their complaints."

TPR also confirmed that other professional trustee firms appointed by TPR to pension schemes with scam characteristics are also similarly pursuing claims through the FCF. 

The FCF is still progressing a number of these claims, although it has confirmed that company claims for members of the Ark Schemes had been approved, as well as the Pinnacle Pension Scheme, and some sections of the Athena schemes.

Commenting on the news, TPR executive director of regulatory complaince, Gaucho Rasmussen, said: “We know how devastating the impact of pension fraud can be and hope this compensation will help members of the affected schemes to rebuild their lives.

"We and our partners have identified further opportunities to bring compensation to victims of historic scams – and more payments are to follow later this year and in 2026.” 

However, Rasmussen emphasised that "prevention remains paramount", clarifying that compensation is far from guaranteed for all those impacted by suspected fraud, as not all types of pension schemes used by fraudsters meet the eligibility criteria.
 
"We urge the pensions industry to be vigilant and report any suspicions to Action Fraud. Every report counts, providing the intelligence we need to stop fraudsters in their tracks," he added.

Harris echoed this, emphasising that "intelligence sharing across the pension industry should remain a priority to reduce the harm committed by pension fraudsters".  

Protheroe also confirmed that the FCF believes that there may still be members of schemes eligible for compensation who haven’t yet come forward, encouraging these members to get in touch so the fund can help determine if they are entitled to compensation.

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