DWP ditches plans for 'micro pension pot' refunds

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The Department for Work and Pensions (DWP) will not legislate on ‘micro pot' refunds, despite industry warnings that pension schemes will be forced to administer thousands of tiny pots.

A government spokesman confirmed the government has decided not to legislate due to the complexity of refunding the micro pots. He said: "We agreed in the government response to the consultation [Improving transfers and dealing with small pension pots] that we would explore further the issue and the minister of pensions decided not to legislate for micro pot refunds. We will monitor it though as auto-enrolment rolls out." He said a micro pot refund would have to be simple and quick, but the cost would then exceed the administrative savings for schemes. The decision comes after pens...

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