Marvin OnumonuThe Pensions Regulator (TPR) has welcomed a report from the Pensions Data Project, which looked into small defined contribution (DC) pension pots.
The report found that over two million small pots across five master trust providers could be consolidated if all five acted as default consolidators under current Government plans.
This comes as Parliament considers the Pension Schemes Bill, which includes measures for consolidating small DC pots.
Patrick Coyne (pictured), director of pensions reform at TPR, said: “TPR welcomes the work of the Pensions Data Project to establish a database which supports evidence-based policy-making.
“We have to solve the small pots problem, and this report highlights how fragmentated the DC pensions landscape really is.
“It also underlines the critical role that the pensions industry will need to play in implementing the Pension Schemes Bill and making the system work for everyone.”
Coyne added: “We look forward to discussing innovative solutions with the industry to ensure that the default consolidation of small pots works effectively in savers’ interests.”
