Small pension pots will follow workers, says DWP

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The Department for Work and Pensions (DWP) is to implement a system where small pension pots follow workers when they change jobs.

This comes after the government consulted on small pots in December 2011, during which the DWP proposed two models for small pot consolidation. The other proposal was to create a system where small pots automatically moved into a central aggregator fund, with the National Employment Savings Trust (NEST) touted as a possible consolidator. DWP figures claim that with the introduction of auto-enrolment and the possible banning of short service refunds, 50 million pension pots could sit dormant by 2050. The department said that pot-follows-member will give "far greater levels of consol...

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