DWP reveals automatic small pot transfer system

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The Department for Work and Pensions has confirmed it will create an ‘automatic transfer' system for small pots of less than £10,000, allowing workers to take their pensions with them from job to job.

The changes will include the abolition of short service refunds for money purchase schemes, possibly as soon as 2014. Pensions minister Steve Webb said: "Instead of having lots of small pension pots all over the place, we want people to have a 'big fat pot' which will buy them a better pension. "We want to make it the norm that when you move job your pension rights can move with you if you wish. This will reduce the costs of providing pensions and will help people to be much more engaged with their pension savings". A pot will be eligible for automatic transfer as long as it was cr...

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