Ending the Proliferation of deferred Small Pots: PLSA response to DWP consultation

The Department for Work and Pensions published a consultation paper setting out their ambitions regarding the consolidation of small pots. This follows years of work from the PLSA/ Association of British Insurers (ABI) led Small-Pots Coordination Group.

In forming its response to the consultation, the PLSA has taken a number of steps, including re-convening the Master Trust Committee Small Pots Working Group, discussions with DC and Master Trust Committees and putting proposals to the PLSA Policy Board.

Overall, the PLSA is supportive of the direction of travel that the DWP have taken. If some of the real policy challenges relating to the chosen Multiple Default Consolidator Model are worked through, then this has the potential to address the stock of small pots. The PLSA believes that it is vital that the DWP properly empower the Delivery Group to achieve the best outcome.