Pot follows member and defined ambition pensions put on hold
19 October 2015
Defined ambition pensions and pot follows member (automatic transfers) were both key policies put forward by the former pensions minister. Ros Altmann, the current pensions minister has said that the market needs time and space to adjust to the other pension reforms and that these areas will be revisited at a later date.
News from Professional Adviser reports that the pensions minister has confirmed that the pension policies on defined ambition and pot follows member are to be put on hold as it is not the right time to ask the pensions industry to absorb the new swathe of regulation that would be needed to make such further reforms work effectively.
Ros Altmann reportedly said in a ministerial statement: "The market needs time and space to adjust to the other reforms underway and these areas will be revisited once there has been an opportunity for that to happen."
Altmann said the government's priorities were the smooth introduction of the new state pension, set for 6 April next year and the continued roll out of auto-enrolment. This means the new state pension being delivered as smoothly as possible and small and micro employers getting the help and support they need as they meet their automatic enrolment duties. The government and the pensions industry are also currently working through the changes following from the new pension flexibilities which allow scheme members to have more freedom and choice about how and when they withdraw their pension savings.
- Defined Ambition legislation expected in 2015 - 24 February 2014
- Government reforms to stop savers losing mini pension pots - 16 March 2015