Operation Big Fat Pension Pot

Pensions minister Steve Webb has confirmed its intention to have a pot follows member system to consolidate small pots in place by autumn 2016.

Organisations representing employers, consumers, workers and the elderly have joined the National Association of Pension Funds (NAPF) in urging the government to rethink its commitment to pot follows member.

The Tax Incentivised Savings Association (TISA) Exchange (Tex) will establish a project to bring pension transfers within its scope.

The Department for Work and Pensions (DWP) should reverse its decision to consolidate savers' pensions through a system that would see pots following members as they change jobs, says a thinktank.

In a paper published today, Centre for Policy Studies fellow Michael Johnson made 15 recommendations on how the government can address the problem of small pots.

The majority of contributors believe the government was wrong to bring forward the end of short service refunds. The move means refunds will be banned before measures to consolidate small pots are expected to be in place.

Members could lose out from an automatic transfer system for small pots if their pension is moved into a scheme with higher charges, the industry has warned.

The Superannuation Arrangements of the Universities of London has banned transfers in from any scheme not in the public sector transfer club.

The Department for Work and Pensions will not legislate on ‘micro pot' refunds, despite industry warnings that schemes will be forced to administer thousands of tiny pots.

Government plans to consolidate small pension pots are "impractical" and risk "damaging retirement savings, a broad coalition of organisations argues.