New Rules Protect Small Auto Enrolment Pension Pots


Author: Kay Augustus (ACIPP), Head of LHP Payroll & Pensions

Measures to protect small pension pots from being eroded by banning flat fee charges on default defined contribution (DC) pensions used for auto-enrolment (AE) with pots worth less than £100 have been set in parliament.

The rules are expected to come into play in April 2022, meaning pension savings invested in the default funds of schemes used for AE with a value of £100 or less will be exempt from flat fees, in a move that is expected to benefit ‘hundreds of thousands’ of UK savers.

2022 marks 10 years since the introduction of Automatic Enrolment. Since its introduction, eligible employees participating in workplace pensions has grown from 55% to 88%. By November 2021, 10.6m employees were enrolled in an Automatic Enrolment Pension Scheme.

Alongside the £100 threshold, known as the ‘de minimis’ – the government will work with pensions industry on wider consolidation initiatives to tackle growth of small pots, including through the industry-led Small Pots Co-ordination Group.

See: New rules to protect value of small pension pots laid in Parliament – GOV.UK (

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