Pensions short-service refunds - NAPF Comment

Commenting on the Government response to the call for evidence on regulatory differences between occupational and workplace personal pension schemes, Darren Philp, Director of Policy at the National Association of Pension Funds (NAPF), said:

“The DWP is right to acknowledge that the removal of short-service refunds will result in an increasing number of smaller pension pots and that this is a complex issue. Its commitment to further exploring the issue is a sensible next step.

“But we are disappointed with the signal that the Government intends to legislate. Simply changing one aspect of the rules that govern occupational pensions could lead more employers to move away from trust-based schemes.

“Good governance in DC goes to the heart of good member outcomes. The Government needs to be careful not to create a governance vacuum which could result in poorer member outcomes and work against what the Government is trying to achieve.

NOTES TO EDITORS:

1) Darren Philp is available for interview

2) The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.

CONTACTS:

Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683. [email protected]

Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]