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DWP looks to simplify bulk DC transfers

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The Department for Work and Pensions wants input on how it can simplify bulk defined contribution pension transfers without consent.

In a call for evidence published today, the DWP says it is interested in bulk transfers from occupational and stakeholder pension schemes.

It confirms it is not considering changes to requirements for bulk transfers of defined benefit pensions without consent, however.

DWP says: “We want to make sure these provisions, which were originally designed for a DB, rather than a DC landscape, can work effectively for DC schemes. In particular, we are looking to see how we can: reduce unnecessary burdens whilst ensuring members are adequately protected; allow providers of stakeholder pension schemes to transfer members to more modern and often lower cost schemes.”

The DWP says it wants to allow “scale” to develop in the DC space.

It says: “Often, smaller DC occupational schemes will have weaker governance and usually have higher charges. By enabling these small schemes to exit the market or consolidate, improving bulk transfer arrangements should help scale to develop without the need for specific legislation.”

The call for evidence closes on 21 February with policy proposals expected in 2017. If secondary legislation is needed it is expected to be in place by April 2018.

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  1. Seems to me that the issue here is the words “without consent”.

    Who takes responsibility if things go wrong.

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