WIREDGOV

The CBI yesterday commented on the publication of the DWP’s proposals for an automatic transfer system for small pension pots.

Neil Carberry, CBI Director of Employment and Skills, said:

“The consolidation of small pots into larger ones is a desirable goal, but as ever the devil lies in the detail.

“Businesses would have preferred a virtual aggregator to an automatic transfer system. This would have been easier to implement and, crucially, avoided the risk of member detriment.

“The Government’s choice to opt for automatic transfers suggests a move away from guaranteed savings. These schemes need long-term membership in order to be viable.

“In implementing the reforms, the Government must now take care that it doesn’t discourage pension saving. The impact of the planned abolition of short service refunds on saving in trust-based schemes remains a concern here.”

Note to Editors:

The CBI is the UK's leading business organisation, speaking for some 240,000 businesses that together employ around a third of the private sector workforce. With offices across the UK as well as representation in Brussels, Washington, Beijing and Delhi the CBI communicates the British business voice around the world.