Pot follows member system will not go ahead says pensions minister

23 April 2018

Pot follows member system will not go ahead The government have reaffirmed their decision to drop the 'pot follows member system'. The system, launched by the former pensions minister Sir Steve Webb in 2015 was to reflect the reality of modern work and allow savers to take their auto enrolment pension from job to job. It was due to be launched in 2015 but was paused by Sir Steve Webb's successor as pensions minister Baroness Ros Altmann, to allow auto enrolment to be completed.

In a written answer to Parliament, Mr Opperman, said now isn't "the right time to implement automatic transfers."

He said: "The government's priority for private pension savers in 2018 remains the successful roll-out of automatic enrolment. Industry shares this priority. With 94 percent of eligible jobholders automatically enrolled in an occupational defined contribution [DC] scheme enrolled in a master trust, scheme managers and trustees are focused on preparing for compliance with the authorisation and supervision regime introduced by the Pension Schemes Act 2017."

"These reforms increase the number of people saving into workplace pensions and ensure confidence in the system. Government, providers, employers and members should focus on these changes."

However, Mr Opperman added that individuals with a defined contribution pension pot "have a statutory right to transfer to another pension scheme of their choice" and can use the Department for Work & Pensions (DWP) pension tracing service to "identify pension pots they have accumulated with former employers".

He said: "Members could also benefit from the introduction of the pensions dashboard, which should make it easier to see all their pots in one place when they choose to do so. This would enable them to feel in control and take ownership of their pensions. We are currently conducting a feasibility study and aim to publish our findings later in spring 2018."

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