Pot follows member most 'cost effective' - DWP

In figures published today, using a £5,000 minimum pot size, the pot follows member system was 23 times more effective than a proposed aggregator scheme and twice that of using a large existing scheme such as NEST, when net present values were compared (see graph below). When the limit was raised to £20,000, automatically transferring funds to the new employer’s scheme was still four times more effective than introducing a separate aggregator scheme. A DWP report accompanying the figures stated: “For any given pot size limit, administrative savings are lower and take longer to materia...