Automatic Transfers

Book excerpt: 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 and, where possible, specific detail given 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 government aims to provide for a system of automatic transfers in the forthcoming Pensions Bill, with the detail covered in secondary legislation, subject to formal consultation.