DWP outlines pot follows member plans with two-step proposal

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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...

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