Small pots group unveils three solutions for DC pension consolidation

Working group lays out plans

Hope William-Smith
clock • 6 min read

Three options to consolidate the mass number of small defined contribution (DC) pension pots in the UK have been outlined by the Small Pots Co-ordination Group (SPCG).

In its spring 2022 progress report today (23 June), the SPCG - convened by the Pensions and Lifetime Savings Association (PLSA) and the Association of British Insurers (ABI) - outlined its ‘pot follows member' model, a ‘default consolidators model', and a ‘member exchange model'. Under pot follows members, savers' deferred pot in the former employer's scheme moves with them to their new company. The saver is also given the opportunity to opt out. The default consolidators model would see certain pots transferred automatically to a small pots consolidator, also with the opportunity for th...

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