In the response to the consultation document Meeting future workplace pension challenges: improving transfers and dealing with small pension pots, the government confirmed it’s intention to bring forward primary legislation to create a system where, broadly speaking, people’s pension savings move with them when they move jobs.
As people build up larger pots they will have better visibility of their pensions savings, helping them plan for retirement.
The government has worked with the pensions community to develop detailed proposals for how this automatic transfer system should work. These proposals are set out in this paper. Where possible, we have given specific detail about the features of the new system, for example which people and schemes would be within scope and pot size limits.
This paper also sets out how the delivery model might work, and the government’s intention to work closely with interested parties to design the best model.
The Pensions Act 2014 provides for a system of automatic transfers, with the detail covered in secondary legislation, subject to formal consultation.
We published Automatic transfers: a framework for consolidating pension saving on 11 February 2015. It sets out the government’s latest proposals to automatically transfer someone’s pension pot when they change jobs.