Buzz: Govt criticised for accelerating abolition of member refunds

clock • 1 min read

The majority of contributors believe the government was wrong to bring forward the end of short service refunds. The move means refunds will be banned before measures to consolidate small pots are expected to be in place.

"Both of them should have been done together," said one commentator. "This is just another example of the inability of any government to do joined-up writing!"

p17-chart-2

 

Leaping at the chance to bash a bureaucrat, another contributor said: "As always, it is civil servants not understanding how things work. They are not pensions people and always get it wrong."

Some contributors went beyond criticising the timeframe for banning refunds, and questioned the whole concept.

"It seems like a knee-jerk reaction to bolster pot consolidation," was one respondent's verdict. "It assumes that all short service members will remain in employment in the UK. This is not the case in, for example, higher education where many short service members are not British nationals and will be returning to their native countries, so there is no onward pot to consolidate with."

But the measure was supported by almost three out of ten contributors.

"The government should have acted the first time it suggested that this would happen," said one respondent. "Short service refunds undermine the whole concept of auto-enrolment."

Another supporter said: "It's a move that actually fits in with their policy of encouraging saving for retirement, as opposed to most of their other bright ideas which actually discourage saving!"

More on Industry

Professional Pensions: Stories of the week

Professional Pensions: Stories of the week

PLSA rebrands to Pensions UK, FCA targeted support plans, and Hymans launches sole trustee service

Professional Pensions
clock 04 July 2025 • 1 min read
Broadstone records DB scheme funding improvements amid calmer market conditions

Broadstone records DB scheme funding improvements amid calmer market conditions

Both the fully hedged and half hedged schemes saw improvements in funding

Holly Roach
clock 04 July 2025 • 1 min read
Mixed opinion on whether there is a link between pension fund scale and performance

Mixed opinion on whether there is a link between pension fund scale and performance

PP survey shows some see a link while others do not see a connection

Martin Richmond
clock 03 July 2025 • 2 min read
Trustpilot