Government confirms plans to abolish short service refunds
Government confirms plans to abolish short service refunds
In a move that could have a major impact on trust based schemes, Steve Webb has confirmed the Government will abolish short-service refunds for DC schemes saying “I want to ensure that as people move jobs, their money stays in pensions. Taking the money out goes against our overall goal of getting millions more people saving”. Short-service refunds could be abolished as early as 2014.
This, together with auto-enrolment, is going to lead to more “small pots” (estimated 4.7 million by 2050) – hence the current consideration and challenge that needs to be met about combining small pots.
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