Policy hub
...a burden for pension schemes to administer smaller pension...
be approximately 27,000,000 deferred pension pots in master trusts alone, and 9,000,000 active pots. The CIPP attends meetings of the SPCG. So, if you have any feedback on the growing problem outlined here, and any suggestions on how best to tackle it, then we in the policy team would be delighted to hear from you. We can be contacted at policy@cipp.org.uk . Thank you in advance for your input. Formation of the SPCG was a recommendation of a report published in December 2020 by the Small Pension Pots Working Group. The SPCG comprises experts from a range of pension providers, industry bodies and stakeholders: Capital Cranfield Trustees Ltd; Pensions and Lifetime Savings Association; Association of British Insurers;
NLW and other NMW rates, and whether they have affected employment and hours, pay and benefits, productivity, prices and profits. The LPC will submit its recommendations relating to rates for operation from April 2022 in autumn 2021. As with other consultations, a survey will be available to complete, and there will be the chance to join a virtual thinktank roundtable meeting, attended by commissioners of the LPC, during which feedback can be given. Small pension pots group On Wednesday 24 March 2021, the first meeting of a new industry working group – the Small Pots Co-ordination Group (SPCG) – was held, to begin devising a plan of action for combatting the ever- increasing numbers of small pension pots. The problem has been growing more rapidly since the introduction of automatic enrolment in 2012.
Small pension pots are problematic not only for those saving for their retirement, but also for schemes. As the balances of these inactive pension pots are relatively small, it is not uncommon for them to be completely swallowed by costs and charges. More individuals appear to have multiple pension pots, which makes it harder for them to keep track of their savings and means that they may not be aware of all the funds that they will have available to them when it comes to the point of retirement. Additionally, it is more of a burden for pension schemes to administer smaller pension pots, as opposed to administering larger pension pots. The scale of the problem has also been made apparent through research. At present, there are over 8,000,000 deferred pension pots, and 8,000,000 active pots in master trust schemes, with many more in other defined contribution schemes. It is anticipated that if no action is taken to target the problem, then there could
Pensions Administration Standards Association; NOW: Pensions; The
People's Pension; National Employment Savings Trust; The Investing and Saving Alliance; Which?; Pensions Policy Institute; Department for Work and Pensions; Chartered Institute for Payroll Professionals; Herbert Smith Freehills; Aviva; Fidelity; Royal London. n
BeConnected: National Forums Delivered by our policy and research officers, Gemma Mullis and Lora Murphy, these BeConnected: National Forums are the perfect way to understand how recent changes will affect your and your team’s day to day roles. We’ll keep you up to date on any changes and updates revealed in the March 2021 budget and also tell you how you’ll need to implement and process these changes.
Now open to all current CIPP members
Additional dates: 6 May, 12 May, 20 May, 26 May.
Visit cipp.org.uk/events/events-calendar , to book your place and find out more.
cipp.org.uk
@CIPP_UK
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| Professional in Payroll, Pensions and Reward |
Issue 70 | May 2021
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