Automatic transfers consolidating pension savings

Savers will initially be asked to opt-in to the consolidation of their pensions pots scheme.

However, once automatic transfers are "fully operational" they will be facilitated on an opt-out basis.

Reform of the UK’s pension system is already well under way.

Last year saw the introduction of automatic enrolment, confirmation of our plans to fundamentally reform the state pension, and the publication of our strategy for reinvigorating private pensions.

At the heart of our overall strategy is our commitment to support people in building up a better income for their retirement.

Our solution aims to be cost-effective for the pension industry and members.

The implementation update paper Automatic Transfers: A Framework for Consolidating Pension Saving details the progress of the work that has been done to date on the policy of automatically transferring pension pots.

The Pensions Act 2014 provides for a system where, broadly speaking, someone’s pension savings move with them when they move jobs.

Since then we have been taking forward work on how we might design and deliver our policy and have been talking to a wide variety of people, including pension providers, third-party administrators, consumer representatives and employers. We have made good progress and this Command Paper will set out in more detail how a system of automatic transfers might work in practice.

11 February 2015 This publication sets out proposals for a framework for the automatic transfer of pension pots when people change jobs.

The automatic transfers rules are set to be applied to the largest pension schemes from October 2016, with other pension providers being placed subject to the new regime some time thereafter.

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