DWP launches probe into regulatory arbitrage in DC schemes

The call for evidence is in a bid to stop firms using differences between DC regulations to cut scheme costs. Existing rules allow workers with trust-based schemes who leave employment within two years to have their contributions refunded. If an employee takes a refund the employer can leave its contributions in the trust and use this money to offset against administration costs or future contributions. The DWP says it wants to make sure these differences in regulatory regimes do not result in some people failing to save for retirement. It says it is interested in views on poten...