29 January 2024

If you have read our LinkedIn newsletter, The Payroll Pages, on Friday, you may have read about the issue of deferred small pots and why they matter. If you haven’t read that newsletter, go do that now, and subscribe while you are there.

Either way, the CIPP’s response to the latest call for evidence in this area is now available for members to read on our consultation responses page. It is fairly long and complex, but barely scratches the surface of how complicated the coming solutions will need to be in order to achieve positive outcomes for all involved.

Within the response, we set out our main concerns of increased administrative burdens placed on employers if a member-led pension choice in introduced without the backing of a clearing house. For this to happen we must first explore the possibility of unique identifying numbers and setting pension data standards to reduce the chance of errors and misallocating funds.

The CIPP will be seeking to continue conversations with the Department for Work and Pensions (DWP), therefore, if you have any additional comments after reading our response, please do have your say. Use the comment box in the side bar on our news pages, starting your messages with “Small pots” and we will do our best to make your voice heard at government level.

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