Short service refunds banned from October 2015

Helen Morrissey
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Short service refunds are to be banned from April 2015, the government has confirmed.

Pensions minister Steve Webb said the move would further add to the sustainability of the UK pension system. "One problem we have had with trust-based schemes is that where there was less than two years' service people were cashing in their pensions," he said. "If a person went on to have a series of short-term jobs then they would not be building a pension under this practice." Money purchase occupational pension schemes currently make about 20,000 short service refunds every year, a figure which it expects will grow with the continuing roll-out of automatic enrolment. The governm...

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