The Department for Work and Pensions has expressed concern at the differences between rules governing short service refunds in trust and contract-based defined contribution schemes. Earlier this year it issued an industry-wide call for evidence on the issue to review whether disparity in regulatory regimes resulted in some employers cutting scheme costs.
Existing rules allow members in trust-based schemes that leave employment within two years to have their contributions refunded. If an employee takes a refund then the employer can leave its contri...
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