19 December 2011
The Department of Work and Pensions has launched a consultation on how to treat the proliferation of small pension pots. An individual moving from job to job may easily build up a portfolio of several small entitlements with consequent problems of administration, communication and cost.
Their proposed initiatives include:
- encouraging members to consolidate their pension savings, so reducing the cost of administering small pension pots
- transferring small pension pots to one or more aggregator schemes
- transferring pension savings so they follow an individual from job to job
The paper also announces the end of short-service refunds for members of DC occupational schemes.
The consultation closes on 23 March 2012.