DWP outlines pot follows member plans with two-step proposal

clock

The Department for Work and Pensions (DWP) has published proposals to automatically transfer small pots when savers move jobs, with exemptions for funds outside the 0.75% charge cap.

The draft paper follows confirmation from pensions minister Steve Webb last month that auto-transfers would begin on a voluntary basis. The Automatic transfers: a framework for consolidating pension saving paper revealed the policy would take a two-phase approach. The policy would be operated through opt-ins by scheme members under phase one, but this would be replaced by an opt-out regime in the second phase of the project. Under the plans, schemes would have to set up their own register of dormant pots either in-house or with a third-party which would form part of a wider network...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Petition pushing government to protect pension tax incentives gets 3,000 signatures

Petition pushing government to protect pension tax incentives gets 3,000 signatures

AJ Bell pushes to end ‘damaging speculation’ on tax-free cash and reliefs

Jenna Brown
clock 07 October 2025 • 2 min read
Standard Life launches 'affordable' pensions-focused advice arm

Standard Life launches 'affordable' pensions-focused advice arm

For existing Standard Life customers approaching retirement

Jenna Brown
clock 06 October 2025 • 2 min read
Clients need 'tailored approach' ahead of IHT on pensions

Clients need 'tailored approach' ahead of IHT on pensions

IHT ‘coming up more and more’ in conversations with clients

Sahar Nazir
clock 03 October 2025 • 2 min read